Author Question: Ronald Coase's insight regarding the firm was that a. firms tend to be more profitable when ... (Read 51 times)

dollx · **on:** Jun 30, 2018

Ronald Coase's insight regarding the firm was that
a. firms tend to be more profitable when economies of scale are greater
b. uncertainty and information are the keys to perfect competition
c. perfectly competitive firms tend to displace monopolies
d. economic activity is best understood in terms of the transaction costs of exchange
e. consumers often carry out transactions directly with resource suppliers

Question 2

Suppose the exchange rate is such that 1 U.S. dollar equals 1 euro in New York and 0.9 euros in Paris. An arbitrageur would sell euros
a. in New York and buy U.S. dollars in Paris
b. in Paris and buy U.S. dollars in New York
c. in New York while buying them in Paris
d. in Paris while buying them in New York
e. at the same price in both cities