Firms can acquire access to savings indirectly through ________
A) issuing securities
B) borrowing from banks
C) the payment of taxes to the federal government
D) the depositing of funds in depository institutions
B
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In a competitive market where the elasticity of the market demand curve is -0.5, there are 100 identical firms, and the elasticity of the supply curve to the other 99 firms is 4. What is the elasticity of the demand curve of the 100th firm?
A) -446 B) -489 C) -50 D) -0.5
Projects with a positive NPV create
a. economic profits since they earn a return higher than the company's cost of capital b. economic profits since they earn a return lower than the company's cost of capital c. accounting profits only since they earn a return higher than the company's cost of capital d. accounting profits only since they earn a return lower than the company's cost of capital