All of the following are advantages of a corporation EXCEPT
A. unlimited life.
B. limited liability.
C. double taxation.
D. ability to raise large sums of financial capital.
Answer: C
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The Coase theorem asserts that under certain conditions, the property rights to an activity will be acquired by the party that values it most
Indicate whether the statement is true or false
A monopolist earns $50 million annually and will maintain that level of profit indefinitely, provided no other firm enters the market. If another firm successfully enters the market, the incumbent's profits remain at $50 million the first period, but fall to $25 million annually thereafter. The opportunity cost of funds is 10 percent, and profits in each period are realized at the beginning of each period. What is the present value of the firm's current and future earnings if entry occurs?
A. $250 million B. $400 million C. $300 million D. $500 million
In the above figure, if this firm produces output level Q2, it has average variable costs of
A. OD. B. OF. C. OC. D. OE.
The stock of wealth increases more rapidly the faster the flow of ________.
A. saving B. money C. income D. assets