Ball found that an important factor affecting the sacrifice ratio is

A ________ between price and quantity sold because ________

A) monopoly faces a tradeoff; to sell a larger quantity, it must lower its price B) monopoly does not face a tradeoff; it controls market entry and can sell at any price and any quantity C) natural monopoly faces a tradeoff; it can always price discriminate D) natural monopoly does not face a tradeoff; it is a price maker E) perfectly competitive firm faces a tradeoff; it is a price taker

Depository institutions are good at minimizing

A) the costs of monitoring borrowers. B) risky borrowers. C) liquidity. D) all of the above.