A firm would most likely use a large advertising campaign for which of the following products?
a. flour
b. bread
c. celery
d. iron
b. bread
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What are the major factors that a TNC should weigh in deciding to invest in a developing country?
What will be an ideal response?
You share a room in a large apartment complex with three other students, and you want to have an end-of-semester party that may become very noisy
Your lease clearly states that you are not to disturb the other residents, but you believe the Coase Theorem implies that you should be able to bargain with your neighbors and reach an agreement on hosting the party. However, you are wrong and bargaining is unlikely to achieve an efficient outcome. Which condition of the Coase Theorem is not met in your situation? A) Property rights are not clearly assigned. B) The costs of bargaining are too high. C) You must have the property right to host noisy parties for the Coase Theorem to work in this case. D) All of the Coase Theorem conditions are met.
Very Technical is a firm that sells computing equipment. It costs Very Technical $100 for each order of computer monitors and the variable cost of placing an order is $4 per monitor. Very Technical pays an annual holding cost of $10 per monitor. If Very Technical sells 6,000 computer monitors a year and they order 500 monitors, what is the total annual cost of the monitors?
A) $27,700 B) $21,500 C) $32,800 D) $35,700
If there are many suppliers of an input a firm is more likely to produce it internally than to purchase it in the market
Indicate whether the statement is true or false