What are the effects on a market when there is entry?
What will be an ideal response?
Market price usually falls, economic profit is reduced, and if there is a license required to enter the business, its value usually falls.
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Private placements avoid
A) restrictive agreements. B) SEC registration costs. C) the need for collateral. D) the primary market.
Under what circumstances does purchasing-power parity explain how exchange rates are determined, and why is it not completely accurate?
Refer to the accompanying figure. At point D, the opportunity cost of making milk is:
A. high because productive resources that are better-suited to making movies are being used to make milk. B. high because productive resources that are better-suited to making movies are not being used to make milk. C. low because the economy is specializing in making milk. D. high because the economy is not operating efficiently.
Which of the following is not one of the three pillars of productivity growth?
A. Rate of capacity utilization B. Rate of technological improvement C. Rate of improvement in workforce quality D. Rate of capital expansion