The major source of investment finance in the European model is
a. The stock market
b. Foreign investment
c. Reinvested profits
d. Bank loans
e. All of the above
D
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Assume that at the current market price, a perfectly competitive firm's profit-maximizing level of output yields total revenues that are just equal to total costs. Which of the following statements applies to this firm?
A) The firm should shut down right now. B) The firm should continue to operate in the short run to minimize losses, but shut down if things don't improve over the long run. C) The firm is earning zero economic profit and should continue to operate. D) The firm should increase its explicit costs to reduce its tax burden.
Real standards of living can increase
A) if the country is producing the same amount they traditionally have and are enjoying more leisure time. B) only if there is positive economic growth. C) if there is positive growth in the manufacturing sector. D) only at the cost of increased urban congestion.
If the assets used during the various stages of production are relatively nonspecific but the markets are highly uncertain, a short-term contract is likely to be the most efficient
Indicate whether the statement is true or false
Price cannot fall so low that some sellers choose to supply a quantity of zero
a. True b. False Indicate whether the statement is true or false