How does a firm raise external funds through direct finance?
What will be an ideal response?
With direct finance, funds flow from savers to firms, via the sale of stock or bonds, through financial markets, such as the New York Stock Exchange.
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The declining cost of computer technology has made ________ a reality
A) brick and mortar banking B) commercial banking C) virtual banking D) investment banking
Suppose a monopolist and a perfectly competitive firm have the same cost curves. The monopolistic firm would:
a. charge a lower price than the perfectly competitive firm. b. charge a higher price than the perfectly competitive firm. c. charge the same price as the perfectly competitive firm. d. refuse to operate in the short run unless an economic profit could be made. e. refuse to operate in the short run if an economic loss was present.