The higher are a firm's risk-corrected returns
A) the lower are its labor costs.
B) the higher are its opportunity costs.
C) the more advantage it has in obtaining investor financing.
D) the more difficulty it will have financing its expansion plans.
Answer: C
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Assume there is a toll bridge that is built by a private firm. It's been determined by cost accountants that the marginal cost that each automobile imposes is close to zero
If the bridge cost $1 million to build and 250,000 automobiles cross it each day what is the price that would be necessary for the firm to charge in order to achieve the key efficiency criteria of perfect competition? How might this be a problem for this private bridge company?