The higher are a firm's risk-corrected returns
A) the lower are its labor costs.
B) the higher are its opportunity costs.
C) the more advantage it has in obtaining investor financing.
D) the more difficulty it will have financing its expansion plans.
Answer: C
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Suppose there are only two goods: guns and roses. If the relative price of guns falls, then the relative price of roses
a. must also fall. b. must rise. c. is unaffected. d. could rise, fall, or remain unchanged.
In a perfectly competitive industry, which of the following is a market signal to resource owners?
A) economic profits B) quality of goods C) the level of exports in the country D) the level of subsidies the industry receives
A technological advance that increases the productivity of all inputs is best illustrated as: a. a movement along the production possibilities curve. b. a flattening of the production possibilities curve
c. an inward shift of the production possibilities curve. d. an outward shift of the production possibilities curve.
Ad valorem taxes
A) are not used in the United States. B) are paid as a fixed percentage of a good's unit price. C) are based on income levels. D) are accessed based on the costs of producing the goods or services.