For a firm in a perfectly competitive labor market, the supply curve of labor is
A) elastic.
B) inelastic.
C) perfectly elastic.
D) perfectly inelastic.
C
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Distinguish between direct finance and indirect finance. Which of these is the most important source of funds for corporations in the United States?
What will be an ideal response?
Bill operates a boat rental business in a competitive industry. He owns 10 boats and pays $1,000 per month on the loan that he took out to buy them. He rents each boat for $200 per month. The variable cost for each boat rental is $50 . In the off season, Bill should
a. operate his business as long as he rents at least 7 boats per month. b. operate his business as long as he rents at least 1 boat per month. c. operate his business as long as he rents all 10 boats each month. d. raise the price he charges per boat rental.