Since crowd funding sites do not themselves invest in business start ups that raise funds on their sites, they don't reduce:

A) the principal-agent problem
B) information costs
C) transaction costs
D) asymmetric information

A

Economics

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Several factors are important for achieving faster economic growth. Which of the following is one of those factors?

A) expansion of international trade B) increased government expenditure C) increased taxes on saving D) promotion of consumption expenditure

Economics

Consider the following payoff matrix for a game in which two firms attempt to collude under the Bertrand model:

Firm B cuts Firm B colludes Firm A cuts 6,6 24,8 Firm A colludes 8,24 12,12 Here, the possible options are to retain the collusive price (collude) or to lower the price in attempt to increase the firm's market share (cut). The payoffs are stated in terms of millions of dollars of profits earned per year. What is the Nash equilibrium for this game? A) Both firms cut prices. B) Both firms collude. C) There are two Nash equilibria: A cuts and B colludes, and A colludes and B cuts. D) There are no Nash equilibria in this game.

Economics