Firms would not exist if
A) contracts were incomplete.
B) residual income equaled normal profit.
C) income was spontaneously earned.
D) contracts were complete.
Correct Answer:
Verified
Q10: Risk is shifted to the owners of
Q11: All the costs of a transaction are
Q12: If a firm decides to produce a
Q13: The market for control of corporations serves
Q14: Firms exist because of
A)incomplete contracts.
B)team production.
C)the incentive
Q16: Without enforcement, a contract
A)is binding.
B)is lateral in
Q17: The CEO and stockholders are not necessarily
Q18: Firm governance must enhance
A)wages.
B)control by stockholders.
C)efficiency.
D)government regulation.
Q19: The Prime Directive says look to
A)the market.
B)the
Q20: Without contracts, what type of transactions would
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