If two investments are perfectly negatively correlated:
A. diversification is not effective at reducing risk.
B. bets are perfectly hedged and risks are canceled out.
C. diversification reduces risk without changing the expected payoff.
D. diversification reduces both risk and the expected payoff.
B. bets are perfectly hedged and risks are canceled out.
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Featherbedding shifts the marginal revenue product of labor curve to the right
a. True b. False
The more substitutes that are available for a product, the more elastic the demand for that product is.
a. true b. false
Network externalities create a push toward:
A. perfect competition. B. government deregulation. C. foreign competition. D. natural monopoly.
In a cartel, firms jointly act as
A. a perfectly competitive firm. B. a monopolistic competitive firm. C. a monopoly firm. D. an oligopolistic firm.