What does it mean if an industry has external economies?
What will be an ideal response?
There are external economies in an industry if long-run average costs fall as the size of the industry increases.
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Nonfinancial businesses in Germany, Japan, and Canada raise most of their funds
A) by issuing stock. B) by issuing bonds. C) from nonbank loans. D) from bank loans.
The slope of a horizontal line is always equal to zero
Indicate whether the statement is true or false
Debt service payments by the government:
A. do not burden the generations that must make them. B. are a payment for past expenditures. C. are used to purchase goods and services. D. have fallen continuously since World War II.
If top managers make good decisions, the firm's profits will be ________, and the firms assets will be ________
A) high; small relative to its liabilities. B) high; large relative to its liabilities. C) equal to its revenues; small relative to its liabilities. D) low; large relative to its liabilities