If asset returns are less than perfectly correlated, portfolio diversification
A) reduces systematic risk.
B) reduces nonsystematic risk.
C) increases systematic yields.
D) reduces systematic yields.
B
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Refer to Figure 11-18. Starting from point D, a movement along isoquant2 to point F
A) increases the total cost of production with no change in output. B) increases output but not the total cost of production. C) increases both the total cost of production and output. D) increases the total cost of production and decreases output.
Tina's marginal utility of her first piece of cake is 15, while Jerry's marginal utility of his first piece of cake is 24 . An economist would conclude that
a. Tina likes cake more than Jerry likes cake b. Jerry likes cake more than Tina likes cake c. Tina likes cake less than Jerry likes cake d. Jerry likes cake less than Tina likes cake e. we can't judge who values cake more
A profit-maximizing firm will continue to expand output:
A. as long as the revenues from the production and sale of an additional unit exceeds the average cost of the unit. B. until the average cost of producing the good or service is at a minimum. C. as long as the revenues from the production and sale of an additional unit exceeds the marginal cost of the unit. D. until the marginal cost of producing a good or service is at a minimum.
The pricing strategy in which one firm is allowed to establish the market price for all firms in the market is called
A. The profit-maximizing rule. B. Price leadership. C. Marginal cost pricing. D. Price discrimination.