In economies with effective accounting standards and low-cost, reliable information, ________
A) banks become less dominant among intermediaries
B) the tyranny of collateral is particularly intense
C) funds are available only for activities involving little or no risk
D) restrictive covenants are difficult to enforce
A
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Because of product differentiation, firms
A) do not have to compete because their products are unique. B) cannot compete on price. C) can compete on the basis of quality. D) are unable to compete by using advertising. E) must compete on only price.
If a natural monopoly regulatory commission sets a price where marginal cost is equal to demand
A) the firm would earn monopoly profits. B) the firm would incur a loss. C) economic efficiency would not be achieved. D) the firm would break even.
Poorly performing financial markets can be the cause of
A) wealth. B) poverty. C) financial stability. D) financial expansion.
A demand curve that has constant price elasticity of demand coefficient equal to one at all points is a (an):
a. None of the answers are correct. b. upward-sloping straight line. c. rectangular hyperbola. d. downward-sloping straight line.