According to your authors, entrepreneurial innovation is similar to arbitrage because both activities ultimately involve
A) obtaining inputs at relatively high prices and selling the output at lower prices.
B) obtaining inputs at relatively low prices and selling the output at higher prices.
C) the absence of uncertainty.
D) the presence of perfect and complete information.
B
Economics
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In the two-period model, the nature of the asymmetric information is that
A) only the bank knows who the bad borrowers are. B) only borrowers know whether they are bad or not. C) only borrowers know the value of their collateral. D) only banks can value the collateral.
Economics
What is the economic way of thinking, and why is it important?
What will be an ideal response?
Economics