The value of the best thing that a person must give up when making a decision is known as the ________ cost
A) opportunity B) sunk C) benefit D) explicit E) direct
A
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In each of the following cases, identify whether a competitive firm's producer surplus will increase, decrease, or remain unchanged
i. The demand for the product increases ii. The firm's marginal cost of production increases iii. The market price of the product falls
Considering interest-rate swaps, the swap spread is:
A. another name for the swap rate. B. the difference between the benchmark rate and the swap rate. C. a measure of the time value of the swap. D. the benchmark rate plus the swap rate.
Suppose a plaintiff hires a lawyer to represent her in a court case. She agrees to pay the lawyer a wage per hour. She knows precisely what the lawyer should do and how long each activity should take, and she can verify that the lawyer has correctly completed each activity. She can terminate the contract at any time. With this contract,
A) the lawyer bears all the risk. B) the risk is shared by the lawyer and the plaintiff. C) production efficiency can be achieved. D) production efficiency is impossible.
Financial assets that represent the partial ownership of a firm and ability to share in its profits are called:
A. equities. B. debt certificates. C. intermediaries. D. credit risks.