Author Question: According to your authors, entrepreneurial innovation is similar to arbitrage because both ... (Read 41 times)

strangeaffliction · **on:** Jun 29, 2018

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.

Question 2

The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair ________ 40 and the quantity ________.

A) will rise above; demanded will decrease
B) will rise above; supplied will increase
C) will fall below; demanded will increase
D) will fall below; demanded will decrease