Aggregation reduces the standard deviation of demand
A) only if demand across the regions being aggregated is perfectly positively correlated.
B) only if demand across the regions being aggregated is not perfectly positively correlated.
C) even if demand across the regions being aggregated is not perfectly positively correlated.
D) whenever demand across the regions being aggregated is not perfectly positively correlated.
Answer: B
You might also like to view...
We have been searching for ____ to find the perfect candidate
A) awhile B) a while
(I) The market price of a security at a given time is the highest value any investor puts on the security. (II) Superior information about a security increases its value by reducing its risk
A) (I) is true, (II) is false. B) (I) is false, (II) is true. C) Both are true. D) Both are false.
In Cicero's story of the merchant carrying grain overseas to Rhodes, it was Cicero's belief that:
a. "…it is one thing to conceal; not to reveal is quite a different thing. (The Merchant) is under no obligation to tell everything that it may be in (their) best interest to be told…" b. "…since (the merchant) has goods to sell, he may try to sell them to the best possible advantage, provided he is guilty of no misrepresentation…" c. "…all the facts should be disclosed, that the buyer may not be uninformed of ay detail that the seller knows…"
Small-scale entrants are more likely to capture first-mover advantages associated with switching costs
Indicate whether the statement is true or false.