Which of the following provides the strongest evidence that the corporate form of business structure is relatively cost efficient in many industries?
a. the ability of the corporate business structure to compete effectively in most industries with other forms of business structure
b. the fact that nearly three of every four businesses in the United States is an individual proprietorship
c. the fact that economic theory indicates corporate managers have some leeway to pursue their own interests at the expense of greedy capitalists
d. the ability of some corporate managers to achieve high salaries even though the firms they are directing are not earning economic profit
A
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Which of the following is true
a. Increasing output always leads to increase in profits b. Increasing outputs increase profits if price is above marginal cost c. Increasing output increases profits if price is lea than marginal costs d. Increasing output always decreases profits
Mutual interdependence among firms in an oligopoly means that:
a. firms never practice price leadership. b. firms never form a cartel. c. it is difficult to know how firms will react to decisions of rivals. d. no formal agreement is possible among firms.