If a firm doubles inputs and produces three times the output, then there are
A) constant returns to scale.
B) diminishing marginal product.
C) decreasing returns to scale.
D) increasing returns to scale.
D
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Which of the following is NOT held as an asset by banks?
A) securities B) loans C) reserves D) currency in the banks' vaults E) checkable deposits
Much of the outcry in the 2008 fight over a fat bailout for Wall Street focused on the size of Wall Street's fat paychecks
The real problem, according to corporate governance researchers, isn't the amount executives receive, it's how companies pay them. Most companies link compensation to quarterly performance, encouraging short-term gambles. One way to align pay with long-term incentives and discourage risky bets would be to stretch compensation over more years. What is a suggested solution to the principal-agent problem? A) employee ownership B) employee incentive pay C) employee long-term contracts D) employee monitoring
For firms that sell one product in a perfectly competitive market, the market price:
A. will remain constant regardless of an individual firm's output decision. B. is equal to the average total cost of a firm. C. is equal to the marginal cost of a firm. D. All of these are true.
Suppose a firm can charge a relatively low price to try to compete actively with its rivals, or it can charge a relatively high, collusive price. If its strategy is to charge the low price regardless of the other firms' decisions, this low-price is the
firm's A) dependent strategy. B) independent strategy. C) dominant strategy. D) positive sum strategy.