Which of the following provides the strongest evidence that the corporate form of business structure is relatively efficient, particularly when business firms are large?
a. the fact that almost 90 percent of business revenues are generated by corporations
b. the fact that individual proprietorships are more numerous than corporations
c. the fact that economic theory indicates corporate managers have some leeway to pursue their own interests at the expense of the owners of the firm
d. the high salaries of many corporate executives, including some managing firms that are making economic losses
A
You might also like to view...
When the supply curve is flat, a tariff on imported goods
a. always increases the welfare of Americans. b. always decreases the welfare of American.. c. has no effect on the welfare of Americans. d. only affects the welfare of Americans if the goods are also made domestically .
The relationship between disposable income and consumption expenditure is
A) positive. B) U-shaped. C) negative. D) nonexistent. E) not stable because it depends on whether the economy is in equilibrium or not.
What is the primary difference between a mixed strategy and a pure strategy?
A) Pure strategies are always dominated strategies. B) Mixed strategies call for randomizing over possible actions, pure strategies do not. C) Pure strategies are much more common than mixed strategies. D) Mixed strategies are not optimal whereas pure strategies are.
In the Microsoft antitrust case, a federal court ruled to break up the company on the basis of the:
A. size of the corporation. B. firm's effect on the stock market. C. firm's large market share. D. firm's market behavior.