An important function of stock sales after the IPO is to equalize
A. profits across industries.
B. profits across firms within industries.
C. risk-adjusted rates of return.
D. risk-unadjusted rates of return.
Answer: C
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Decrease in government spending will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
The cross-price elasticity between baseballs and tennis balls is likely to be a large positive number
a. True b. False Indicate whether the statement is true or false
Binding price floors benefit sellers because they allow sellers to sell all the goods they want at a higher price
a. True b. False Indicate whether the statement is true or false
The management of Local Cinema has estimated the monthly demand for tickets to be ln Q = 22,328 ? 0.41 ln P + 0.5 ln M ? 0.33 ln A + 100 ln PDVD, where Q = quantity of tickets demanded, P = price per ticket, M = income, A = advertising outlay, and PDVD = price of a DVD rental. It is known that P = $5.50, M = $9,000, A = $900, and Pvcr = $3.00. Based on the information given, which of the following statements is false?
A. Movies are normal goods. B. The advertising elasticity of demand for movie tickets is ?0.33. C. Advertising decreases the demand for movie tickets. D. Movies are complements for DVD rentals.