The motive that drives firms to enter or exit an industry is
A. accounting costs.
B. economic profit.
C. opportunity costs.
D. diseconomies of scale.
Answer: B
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Bill is working as the only employee at a local store. The relation between Bill and the owner of the store is such that Bill is ________ and the owner is ________
A) the agent; the principal B) both principal and agent; neither a principal nor an agent C) neither a principal nor an agent; both principal and agent D) the principal; the agent
Appendix: The principal advantage of an open bidding system for allocating telecommunications spectrum licenses was
a. the pooling of asymmetric information by the bidders b. the reconfiguring of cell phone license areas c. the substitute value of adjacent service areas d. reduced cost
A company unexpectedly announces a product recall due to safety concerns about its product. According to the efficient markets hypothesis, this news should
a. raise the price of the company's stock. b. not affect the price of the company's stock. c. reduce the price of the company's stock. d. More information is needed to answer the question.
Ramsey pricing is a good private enterprise basis for setting access prices
Indicate whether the statement is true or false