When the market estimate of a company's riskiness increases the market adjusts by
a. having the supply of that bond increase.
b. having the supply of that bond decrease.
c. having the demand for that bond increase.
d. having the demand for that bond decrease.
D
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Which of the following is true of public goods?
a. They can only be supplied by the government. b. They will tend to be supplied efficiently by the private sector when markets are competitive. c. It is difficult to establish a one-to-one link between payment and receipt of such goods. d. From an efficiency standpoint, private markets will tend to supply an excessively large amount of public goods.
Refer to the diagram. At the profit-maximizing output, the firm will realize:
A. a loss equal to BCFG.
B. a loss equal to ACFH.
C. an economic profit of ACFH.
D. an economic profit of ABGH.