The process by which price and output are determined in the real world is strongly affected by the structure of the market. A market consists of all the actual and potential buyers and sellers of a particular product. Market structure refers to the competitive environment in which the buyers and sellers of the product operate. Four different types of market structure are usually identified. These are perfect competition one extreme, pure monopoly at the opposite extreme, and monopolistic competition and oligopoly in between.

Under what conditions can we be sure that perfect competition leads to a more efficient use of society's resources than monopoly? How prevalent are these conditions in the real world?

Use the compound interest formula A = Pe\" to answer the following questions. (a) How much will $19700 be worth in 38 years if it is invested at 1.84% interest compounded continuously? (b) How much should you invest initially so you have $88000 in 11 years if you can get 3.46% interest compounded continuously? Which of the following is FALSE about the Pecking Order Hypothesis? O A. Debt financing is less expensive than equity financing. O B. Firms which are most profitable will have a lot of debt in their capital structure. O C. Firms prefer internal financing first. O D. If external financing is required, firms will use equity as a last resort. O E. If external financing is required, firms should first seek debt financing.Question 41 (2 points) Select the correct statement regarding managerial and financial accounting. O A) Financial accounting is more highly regulated than managerial accounting. ( B) Users of managerial accounting information desire greater aggregation than do users of financial accounting information. O C) Both managerial and financial accounting use economic and physical data in addition to financial data. O D) Timeliness is more important in financial accounting than in managerial accounting. SaveBalance of Payments (Billions of $) Current Accounts U.S. merchandise exports +100 U.S. merchandise imports -86 Merchandise trade balance U.S. service exports +70 U.S. service imports Services balance Goods and services balance Net investment income from abroad Net unilateral transfers Current account balance Capital and Financial Accounts Change in U.S.-owned assets abroad -70 Change in foreign-owned assets in U.S. +67 Capital and financial account balance Statistical discrepancy -1 Trade balance