How can a proprietorship or partnership raise funds for expansion?
A) take on a partner or more partners
B) reinvest profit back into the business
C) borrow from someone or an institution willing to lend the funds
D) Any of these would generate funds for expansion.
D
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As a price searcher, a monopoly firm
A) must only determine the price it charges. B) must determine its optimal price-output combination. C) must determine its output level and then accept the market price for its product. D) must determine the prices it pays for its inputs and accept the market price for its output.
Economies of scale will lead to only one firm in the industry because
A) by increasing output a firm is able to lower the cost per unit and charge lower prices driving smaller firms out of business. B) one firm has an average cost curve, which has shifted below the average cost curves of its competitors. C) there are governmental entry restrictions. D) of government licensing.