The Long-Run Total Cost Curve Tends To

question 86

Multiple Choice

The long-run total cost curve tends to:

• A)rotate upward when input prices fall.
• B)rotate upward when input prices rise.
• C)shift vertically upward by a fixed amount.
• D)shift vertically downward by a fixed amount.

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Definitions:

Strong-Form EMH

A theory in financial economics that states all information, public and private, is fully reflected in stock prices, implying no one can consistently achieve higher returns.

Active Management

An investment strategy where a manager makes specific investments with the goal of outperforming an investment benchmark index.

Security Analysis

The evaluation of financial instruments (such as stocks, bonds) to determine their value and potential for return on investment.

Index Fund

A collective investment scheme designed to follow certain preset rules so that the fund can track a specified basket of underlying investments.