For some investors, derivatives can be attractive financial assets to purchase because
A. these assets can be used to offset the possibility of another risk faced by the investor.
B. these assets allow an investor to eliminate the risk that they face entirely.
C. they provide high returns with a very small investment.
D. they are easier to sell than common stock.
Answer: A
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What are the assumptions of the kinked demand curve model? What is its main conclusion about oligopoly behavior?
The vertical axis for an aggregate demand curve measures
A. real Gross Domestic Product? (GDP). B. quantity demanded of the representative good. C. the interest rate. D. the price level.
Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2015. Bartech's average variable cost function is estimated to beAVC = 10 ? 0.003Q + 0.0000005Q2Bartech expects to face fixed costs of $12,000 in 2015. How much profit (loss) does Bartech, Inc. expect to earn?
A. -$2,500 B. $96,000 C. $156,000 D. $166,000 E. $127,000
Refer to the above graph. At the profit-maximizing price and output this firm:
A. incurs economic losses. B. should shut down. C. earns positive economic profits. D. breaks even.