The main function of insurance is to
What will be an ideal response?
pool the risks of healthcare costs.
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If the nominal interest rate is 5.6% and inflation rate is 2.4%, the real interest rate is ________
A) 4% B) 3.2% C) 6.4% D) 8%
There are a few firms in the automobile industry in Poorland. In order to prevent a price war, these firms have secretly agreed to charge a price 20% above the marginal cost of production. This is an example of ________
A) free riding B) undercutting C) collusion D) cost-cutting
Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5 and the wage rate is $62.50 per day, how many workers should Winnie employ to maximize his profit?
A) 2 B) 3 C) 4 D) 5
A firm's external financing need is met by:
a. debt or equity. b. owners' equity, including retained earnings. c. net working capital and retained earnings. d. net income and retained earnings. e. retained earnings.