In closely held firms, the manager-stockholder conflict is
A) worse than in the larger firm because there is no incentive for the individual stockholder to monitor managers.
B) the same as in publicly held firms.
C) less severe than in the larger firm because there is an incentive for the major stockholder to monitor managers.
D) less pronounced than in large public companies, because the manager is the owner.
D
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A firm would decide to shut down if its production resulted in
A) AFC > AVC. B) MR < AVC. C) ATC > AVC. D) MR < ATC.
Why is it difficult to determine whether fluctuations in the target interest rate have led to business cycle fluctuations in the United States, according to the New Keynesian model?
A) Because the Federal Reserve may change the target interest rate according to economic conditions. B) Because the target interest rate is nominal, not real. C) Because inflation is not well measured. D) Because money is neutral.
The United States has more income inequality than Brazil and South Africa
a. True b. False Indicate whether the statement is true or false
Answer the following questions true (T) or false (F)
1. Producer surplus is the difference between the highest price someone is willing to pay and the price he actually pays. 2. Producer surplus is the difference between the highest price a firm is willing to accept for a product and the price it actually receives for the product. 3. The total amount of producer surplus in a market is equal to the area above the market supply curve and below the market price.