Which retail operation would have the highest costs per book sold?
A. A small independent bookstore
B. A large retail bookstore chain
C. An Internet seller of books
D. The Internet seller and retailer
Answer: C
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Most bank loans are __________ maturity by the bank because of the __________ in monitoring how the borrower maintains his obligations
A) held to; ease B) held to; difficulty C) sold before; ease D) sold before; difficulty
Suppose that everyone is risk neutral and buyers cannot identify the lemons. The expected value of a used car is $8,000. No good cars will be sold in this market
A) unless the sellers of good cars place a value greater than $8,000 on their cars. B) unless the sellers of lemons place a value greater than $8,000 on their cars. C) unless sellers engage in cheap talk. D) unless the sellers of good cars place a value lesser or equal to $8,000 on their cars.