Which of the Following Statements Is Incorrect

question 22

Multiple Choice

Which of the following statements is incorrect?

• A)It is possible for some markets to be more efficient than others.
• B)It is possible for markets to be efficient with respect to some information and inefficient with respect to other information.
• C)The market is likely to be more efficient with respect to companies where there is greater analyst following.
• D)The market is totally efficient with respect to companies providing regular dividends to investors.

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Definitions:

Short Run

A period in economics during which at least one input (e.g., factory size) is fixed and cannot be changed.

Long Run

A period of time in economics during which all factors of production and outputs are variable, allowing for full adjustment to changes.

Perfect Competitor

A theoretical concept in which a market structure has many small sellers, all producing homogeneous products with no control over market price.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing additional gain over and above normative expectations.