The excess capacity theorem states that society would clearly benefit from a reduction in the number of monopolistic competitors.

Car A gets 12 miles per gallon. Car B gets 30 miles per gallon. Which is the most economically efficient car?

A) Car A B) Car B C) They are equal in their economic efficiency. D) It is impossible to determine without more information.

Financial intermediaries are

A) institutions that regulate financial instruments. B) organized exchanges where currencies are traded. C) organized exchanges where securities and financial instruments are bought and sold D) institutions that make loans to borrowers and obtain funds from savers.