The limited liability rule means that if a corporation goes bankrupt:
A. Shareholders are responsible for all the debts of the firm
B. Bondholders are responsible for all the debts of the firm
C. Shareholders can only lose the amount they invested
D. Bondholders only lose the face value of the bond
C. Shareholders can only lose the amount they invested
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In the United States, the growth rate of expenditures has been most volatile for
A) durable goods. B) nondurable goods. C) services. D) The volatility has been roughly equal for all three categories of consumption expenditures.
A producer is hiring 20 units of labor and 6 units of capital (bundle A). The price of labor is $10, the price of capital is $2, and at A, the marginal products of labor and capital are both equal to 20. Beginning at A, if the producer increases labor by one unit and decreases capital by 1 unit, then
A. output remains constant and cost increases by $8. B. cost remains constant and output increases by 20 units. C. cost remains constant and output decreases by 20 units. D. output remains constant and cost decreases by $8. E. both cost and output remain constant.
Refer to the graph shown. If regulators wanted this monopolist to earn only a normal profit, they would set price equal to:
A. $3. B. $12.00. C. $2. D. $8.
Recall the Application about the marginal cost involved in producing crude oil to answer the following question(s).Recall the Application. Which country has the highest marginal cost of extracting oil?
A. Saudi Arabia B. Russia C. United Arab Emirates D. Canada