The "greater fool" theory assumes that
A) markets are efficient.
B) bubbles cannot exist in well-organized markets.
C) it makes sense for an investor to buy an asset as long as there is someone else to buy it later for a higher price.
D) bond market returns are always above stock market returns.
C
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If the marginal cost curve is below the average variable cost curve, then
A) average variable cost is increasing. B) marginal cost must be decreasing. C) average variable cost could either be increasing or decreasing. D) average variable cost is decreasing.
Refer to Figure 11-10. Identify the minimum efficient scale of production
A) Qa B) Qb C) Qc D) Qd
The demand for bonds curve slopes downwards because
A) at higher prices, bonds pay higher interest which makes them more attractive to buyers. B) lower prices reduce the cost of borrowing which makes them less attractive to buyers. C) at lower prices, bonds pay higher interest which makes them more attractive to buyers. D) higher prices raise the cost of borrowing which makes them less attractive to buyers.
Refer to the data provided in Table 9.3 below to answer the following question(s). Table 9.3qTFCTVCTCMCAVCATC0$100 $0$100 ---- -- 1100401404040 140 21006016020 30 80 31009019030 30 63.334100124 224 343156 5100180 280 56 36 56 6100 264 364 84 44 60.677100 372 472 108 53.14 67.43Refer to Table 9.3. If the market price is $34, then in the long run the firm will
A. operate and expand. B. operate but not expand. C. shut down, but not go out of business. D. go out of business.