The Figure Shows the Demand Curve for Gap Jackets (D)

question 100

Multiple Choice

The figure shows the demand curve for Gap jackets (D) , and Gap's marginal revenue curve (MR) , marginal cost curve (MC) , and average total cost curve (ATC) .
-In the figure above, the market for jackets ________ in long-run equilibrium, and there is ________ for new firms to enter.

• A) is; no incentive
• B) is; an incentive
• C) is not; an incentive
• D) is not; no incentive

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Definitions:

SML

The Security Market Line (SML) is a line that represents the risk-return relationship of the market at a given time, as described in the Capital Asset Pricing Model (CAPM).

T-Bill Rate

The T-Bill rate is the yield on U.S. Treasury bills, a benchmark for short-term interest rates in the United States.

Portfolio Beta

A measure of the overall volatility or risk of an investment portfolio in relation to the market as a whole.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its risk compared to the market average.