Firms in a perfectly competitive market produce at minimum average cost in the short run and the long run.
Answer the following statement true (T) or false (F)
False
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Given that shares are riskier than bonds, why do investors invest in equity?
What will be an ideal response?
All of the following are shown on a firm's income statement except
A) revenues B) rate of return for investors C) costs D) profits
A technology may be considered inappropriate if it
a. uses a lot of capital b. produces a product that few people want c. has a capital-labor ratio that exceeds the rental-wage ratio d. has a capital-labor ratio less than the rental-wage ratio e. none of the above
Firm A producing one good acquires another firm B producing another good. Price elasticity of demand for Firm A's good is -1.8 and Firm's B is -1.8 . Holding other things constant and assuming both goods are complements, the acquiring firm should
a. lower prices on both goods with a larger decrease in Firm A's good b. lower prices on both goods with a larger decrease in Firm B's good c. Lower prices on both goods by the same amount d. Lower prices on both goods