In the nation's financial markets, what are the various ways a firm can obtain financial capital?
What will be an ideal response?
A firm can obtain financial capital by issuing shares of stock, selling bonds, issuing a commercial bill, or borrowing funds from banks and other financial institutions.
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Refer to Figure 14-5. If Netflix lowers its price, will this deter Spotify from setting up a streaming video service?
A) no, because Spotify will make a larger profit than Netflix if it chooses to compete B) yes, because Spotify stands to lose $1 million if it competes with Netflix C) no, because Spotify will make a profit if it competes with Netflix D) yes, because Spotify will make a smaller profit than Netflix if it chooses to compete
Diminishing returns to physical capital means that when the amount of human capital per worker and the state of technology are held fixed, each increase in the amount of physical capital per worker leads to
What will be an ideal response?