Perfect competition is characterized by a large number of buyers and sellers with identical products and no significant barriers to entry

Banks hold capital because

A) they are required to by regulatory authorities. B) higher capital increases the returns to the owners. C) it increases the likelihood of bankruptcy. D) higher capital increases the return on equity.

Scarcity and choice are the basic problems of economics; the supply and demand mechanism is the basic investigative tool of economics

a. True b. False Indicate whether the statement is true or false