If a public corporation goes bankrupt and does not have enough assets to pay off all creditors:
A. the fact that stockholders are residual claimants means they may have to pay in additional capital to cover the obligations.
B. the stockholders receive any dividends due before the other creditors are paid
C. the stockholders cannot lose more than their investment.
D. the stockholders are personally liable for the balance.
Answer: C
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To be efficient, outputs should be produced that minimize total cost.
Answer the following statement true (T) or false (F)
For a syrup producer in central Vermont, profit is maximized at the level of output for which total
A) revenue exceeds total cost by the largest amount. B) revenue exceeds total cost by the smallest amount. C) revenue is maximized. D) cost is minimized. E) revenue equals total cost.
Which of the following is true in long-run equilibrium for a firm in a monopolistic competitive industry?
A) The demand curve is tangent to marginal cost curve. B) The demand curve is tangent to average cost curve. C) The marginal cost curve is tangent to average cost curve. D) The demand curve is tangent to marginal revenue curve.
The Phillips curve shows that when the unemployment rate is lower than the natural rate,
A) inflation is higher than expected. B) inflation is lower than expected. C) policy rate is higher than expected. D) policy rate is lower than expected.