Stocks of small firms have a higher annual average return than stocks in general. Some economists attribute this to:
A) compensation for the higher risk of small firms
B) lower liquidity of stocks of small firms
C) higher information costs of stocks of small firms
D) all of the above
D
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Suppose you go to a doctor but your health insurance plan does not reimburse you because you have not yet paid enough out of pocket for the year to qualify for insurance benefits. This is an example of:
A. coinsurance. B. a deductible. C. monopsony power. D. a deferred benefit plan.
To be able to engage in profit-maximizing price searching, a monopoly firm must be able to
A. induce the entry of other firms into the market for its product. B. always earn zero economic profits. C. prevent the entry of other firms into the market for its product. D. avoid earning negative economic profits in the short run.
Corn is produced in a perfectly competitive market. The demand for ethanol decreases. This will cause the individual corn farmer?s marginal revenue to ________ and their profit-maximizing level of output to ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease
You own Star Wars - The Last Jedi on DVD. The opportunity cost of watching this DVD for the fourth time
A. is zero, since you own it. B. must be the same as the opportunity cost of watching it the first time. C. is the value of the alternative use of the time you spend watching the DVD. D. is one-fourth the cost of the DVD, as this is the fourth time you have watched it.