In a Competitive Market, Firms Value Inputs

question 66

Multiple Choice

In a competitive market, firms value inputs:

• A)the same as consumers.
• B)at a lower level than consumers.
• C)independently of consumers.
• D)at a higher level than consumers.

---

Definitions:

Equity Beta

A measure of a stock's volatility relative to the overall market volatility.

Business Risk

The equity risk that comes from the nature of the firm’s operating activities.