Buying a diversified mutual stock fund allows you to
A) completely avoid all types of risk.
B) avoid only random, unsystematic risk.
C) avoid only systematic risk.
D) avoid risk only when all the stock prices are perfectly correlated.
B
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Which of the following is true?
A) An outstanding credit card balance is an asset that adds to your personal wealth. B) Interest rates charged by credit card companies are generally high because the loans are unsecured. C) The power of compound interest benefits those with outstanding credit card balances. D) An unused balance on your credit card is like money in the bank.
A monopolist maximizes profits by finding
A) the rate of output where marginal revenue equals marginal cost. B) the rate of output where price equals marginal cost. C) the price where price exceeds marginal revenue by that largest amount. D) the price where average revenue and marginal cost are equal.
A negative value for the marginal physical product would indicate that
A. total output increased by a significant amount. B. total output decreased when the extra unit of the variable input was added. C. the company has not yet reached the point of saturation. D. total output increased, but the increase was very small.
The joining of firms that are producing or selling a similar product is
A. a vertical merger. B. competition by merger. C. a hostile takeover. D. a horizontal merger.