According to agency theory, a financial crisis results from ________ that disrupts the flow of funds from lender-savers to borrower-spenders
A) an increase in asymmetric information
B) a macroeconomic shock
C) the existence of asymmetric information
D) a decrease in saving
A
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The fact that a perfectly competitive firm has a perfectly elastic demand curve means
A) there is no limit to the firm's profits. B) there is no limit to the firm's revenues. C) that it can sell all it wants at any price. D) None of the above
The firm's expansion path records:
a. profit-maximizing output choices for every possible price. b. cost-minimizing input choices for all possible output levels for when input rental rates expand along with production. c. cost-minimizing input choices for all possible output levels for a fixed set of input prices. d. cost-minimizing input choices for profit-maximizing output levels.