Small savers would rather use financial institutions than lend directly to borrowers because:
A. lenders wouldn't want to deal with small savers.
B. it allows them to diversify risk.
C. the liquidity is lower with financial institutions but the return is higher.
D. financial institutions will offer the savers higher interest rates than the savers could obtain directly from borrowers.
Answer: B
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For a perfectly competitive palm tree nursery in South Carolina, the total revenue curve is
A) downward sloping. B) a horizontal line. C) upward sloping. D) U-shaped. E) undefined because the firm is perfectly competitive.
_________ arises when a small number of large firms have all or most of the sales in an industry.
a. Perfect competition b. Oligopoly c. Monopolistic competition d. Production efficiency
Riva crafts and sells hard cider as a part-time job. She can bottle and sell four cases in a week. She is considering hiring her friend Atul to help her. Together, Riva and Atul can bottle and sell seven cases per week. What is Atul's marginal product?
a. 2 cases b. 3 cases c. 5 cases d. 7 cases
Comparing a pure monopoly and a purely competitive firm with identical costs, we would find in long-run equilibrium that the pure monopolist's:
A. price, output, and average total cost would all be higher.
B. price and average total cost would be higher, but output would be lower.
C. price, output, and average total cost would all be lower.
D. price and output would be lower, but average total cost would be higher.