Which of the following is not a necessary characteristic of a purely competitive industry?
A. The industry- or market demand is highly elastic
B. Firms can enter or leave the industry
C. There are so many firms that none can influence market price
D. Consumers see no difference between the product of one firm and that of another
A. The industry- or market demand is highly elastic
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When a commercial bank borrows from a Federal Reserve bank,
a. the commercial bank's reserves are reduced. b. the commercial bank's lending ability is increased. c. the money supply automatically declines. d. the net worth of the bank will decline, indicating that the bank is having financial difficulties.
Foreign aid:
A. provided by developed countries to developing countries represents about 10 percent of the GDP of developed countries. B. is an important source of funding for investment in most developing countries. C. does not contribute much to domestic investment in most developing countries. D. is largely wasted in most developing countries because it comes with no strings attached.
When a person buys a bond of the XYZ Corporation, he or she can expect to
A. pay the corporation a certain amount of money each quarter of the year. B. receive the face value of the bond each year and the face value of the bond when the bond matures. C. receive the coupon rate times the face value of the bond each year and the face value of the bond when the bond matures. D. receive the face value of the bond each year in perpetuity.
Transcendent Alternatives Transcendent Technologies is deciding between developing complicated, thought-activated software, or simple, voice-activated software. The voice-activated software would cost $50 million to develop and has a 60% chance of being
successfully launched and generating revenue of $100 million. The thought-activated software would be a bonanza if successful, generating $1 billion in revenue. But it is so complicated, it is projected to cost would be $400 million. How likely would success have to be for Transcendent Technologies to opt for the thought-activated software?