If the marginal factor cost is greater than the marginal revenue product of a resource, the producer can increase profits by laying off some units of the resource

One result of asymmetric information in the market for bank loans is that

a. few loans are offered b. few bad loans are made c. more bad loans than good loans may be made d. lenders benefit at the expense of borrowers e. the interest on good loans will be higher than otherwise

Sales maximization may be a goal of a firm if

a. firms are managed by irrational persons. b. the firm has no way to measure profitability. c. the firm is privately held, and there is no separation between ownership and control. d. managerial bonuses are based on sales revenue instead of profitability.