Missy recently rearranged her portfolio so that it has a higher average return. As a result of this rearranging, Missy
a. raised both firm-specific risk and market risk.
b. raised firm-specific risk, but not market risk.
c. raised market risk, but not firm-specific risk.
d. None of the above is correct.
b
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Relative to a perfectly competitive market with the same cost and demand, a single-price monopolist produces ________ output and has a ________ price
A) more; higher B) less; lower C) more; lower D) less; higher
"An increase in the price of oranges will increase the demand for grapefruits." This statement is an example of a normative economic statement
Indicate whether the statement is true or false
Bond prices in the marketplace will fall when
A. interest rates fall. B. the company is losing money. C. interest rates rise. D. the company is making money.
Consumer surplus is
a. the amount by which quantity supplied exceeds quantity demanded at the current market price b. the amount by which quantity demanded exceeds quantity supplied at the current market price c. the change in total utility derived from a one-unit change in the consumption of a good d. the difference between the price of the good paid by the consumer and the costs of production to the seller e. the difference between the maximum amount that a consumer is willing to pay for a given amount of a good and the amount that the consumer actually pays