Answer to Question #60236 in Economics of Enterprise for Andrew Jackson
a. Firms face downward sloping demand curves
b. Firms sell differentiated products
c. Firms use advertising extensively
d. In the long-run equilibrium, firms earn zero economic profit
9. Coase Theorem claims that the market can internalize externalities provided:
a. Markets are perfectly competitive
b. Transaction costs are zero, irrespective of how property rights are defined
c. Property rights are well-defined, irrespective of the transaction costs
d. Property rights are well-defined and transaction costs are zero
11. If the nominal interest rate is 10% and the price index rises from 200 to 210, what is the value of the real interest rate?
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