If firms were teams, then there is a need for a
A) profit monitor.
B) benevolent government.
C) boss or supervisor.
D) none of these choices.
C
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Quantitative evidence from Fishlow, Fogel and Mercer indicates that
a. antebellum railroads were built ahead of demand, but post-bellum transcontinentals were not. b. post-bellum transcontinentals were built ahead of demand, but antebellum railroads were not. c. both antebellum railroads and post-bellum railroads were built ahead of demand. d. antebellum railroads were not built ahead of demand, but the evidence on post-bellum railroads is mixed.
Economies of scale tend to create natural monopolies
a. True b. False Indicate whether the statement is true or false
Before the flu season begins, Jeremy gets a flu shot. As a result, Jeremy and several of his friends and relatives avoid the flu for the entire flu season. It would make sense to argue that
a. flu shots provide a positive externality, and that flu shots should be subsidized. b. if flu shots are not subsidized, then the number of people getting flu shots will be smaller than the socially optimal number. c. the externality generated by flu shots is more like the externality generated by education than the externality generated by pollution. d. All of the above are correct.
The fact that borrowers sometimes default on their loans by declaring bankruptcy is directly related to the characteristic of a bond called
a. credit risk. b. interest risk. c. term risk. d. private risk.