What is necessary for a firm to be part of a perfectly contestable market?
What will be an ideal response?
To be part of a perfectly contestable market, the firm must have capital that is both mobile and easily transferable from one market to another.
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Use the following statements to answer this question: I. The effective yield is generally easier to compute for a perpetuity than for a 10-year bond. II
Two perpetuities that have the same annual payment must have the same price, even if the issuers of the bonds are different companies. A) I and II are true. B) I is true and II is false. C) II is true and I is false. D) I and II is false.
Which is most likely to be observed in a community where legal ceilings are imposed on residential rents?
A. Poor people will be able to find adequate housing B. Homeowners will reduce their own use of housing space, making more available to others C. Those whose needs for housing are most urgent will be able to obtain the space they want D. People moving into the community will have difficulty locating residential space to rent