When there are many producers of an identical product and you have perfect and free information about what every seller is charging, eventually every merchant will
A) raise the price of the product in hopes that you will purchase the product from them.
B) agree to charge a high price for the product so each will be able to earn high profits.
C) charge the same price for the product, and the price will be just enough to cover costs.
D) discontinue selling the product since there is so much competition.
C
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Which of the following is a liability of a family?
A. House B. Mortgage C. Share of stock D. Checking account balance
A financial intermediary's main function is to match ________ with excess funds to ________ with a shortage of funds
A) firms; insurance companies B) savers; borrower C) borrower; savers D) governments; households
Stocks and bonds are
a. financial assets; therefore, they are considered to be money b. highly-liquid financial assets; therefore, they are considered to be money c. not highly-liquid financial assets; therefore, they are not considered to be money d. widely accepted means of payment; therefore, they are considered to be money e. not financial assets; therefore, they are not considered to be money
The most important implicit cost generally omitted from the accounting statement of a firm is the
a. rental cost of machinery. b. cost of compliance with government regulations. c. opportunity cost of the equity capital invested by the owners. d. accounting cost incurred as the result of tax compliance.