If a corporation goes bankrupt, bondholders have ________ on the firm's assets
A) second claim, after stockholders, B) no claim
C) first claim D) third claim, after the IRS and stockholders,
C
Economics
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Suppose there are only two steel firms in the steel industry and their prices are equal to or very close to their ATCs. This circumstance suggests that
a. steel firms are not profit maximizing b. steel has no close substitutes c. the demand for steel is weak d. quantity supplied is less than quantity demanded at the market prices e. close substitutes are produced in other industries
Economics
When social costs of an activity exceed private costs
A) a market failure exists. B) there is a tendency for resources to be under-utilized. C) this means that resources are being efficiently used. D) the actual price is above the efficient price.
Economics