In the long run, when price is less than average total cost for all possible levels of production, a firm in a competitive market will choose to exit (or not enter) the market.
In which of the following situations should phone calls be used as a mode of communication?
A) when you intend to leave a paper trail B) when the tone of voice is important C) when you do not need an immediate response D) when you need to review detailed language in a document E) when you want both visual and aural cues
Portfolio theory as described by Markowitz is most concerned with
A) the elimination of systematic risk. B) the effect of diversification on portfolio risk. C) the identification of unsystematic risk. D) active portfolio management to enhance returns.
Rational expectations theory is based on all of the following assumptions,except
A) that individuals and business firms learn through experience to anticipate the consequences of changes in monetary and fiscal policy. B) that individuals and business firms act instantaneously to protect their economic interests. C) that demand creates its own supply. D) that all resource and product markets are purely competitive.