Use the Following Two Columns of Items to Answer the Matching

question 41

Short Answer

Use the following two columns of items to answer the matching questions below:
-risk-free rate
A)an additional return beyond the risk-free rate
B)a return on an investment that is guaranteed for a specified period

• A)an additional return beyond the risk-free rate
• B)a return on an investment that is guaranteed for a specified period

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Definitions:

Profit-maximizing

The process or methodology by which a business seeks to find the best output and sales levels to achieve the highest profits possible.

Marginal Revenue Product

The extra income produced by using an additional unit of a resource, like labor or capital.

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product, leading to price taking by firms.

Marginal Product

The additional output resulting from the use of one more unit of a factor of production.