If a Firm Faces a Horizontal Demand Curve

question 10

Multiple Choice

If a firm faces a horizontal demand curve

• A) when it increases its price, its revenues will rise.
• B) increases in revenues are possible if it increases its price.
• C) increases in revenues are possible without reductions in its price.
• D) it is the only seller of the product in a given market.
• E) industry and product demand curves are identical.

Differentiate between various types of mutual funds and ETFs based on investment goals.

Calculate a mutual fund's turnover ratio.

Distinguish between mutual funds and hedge funds.

Understand the differences between various types of investment funds and their strategies.

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Definitions:

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by shareholders' equity.

Fixed Assets Investment

Expenditures related to acquiring or improving long-term assets such as property, plant, and equipment that will be used in business operations.

Debt-Equity Ratio

The ratio demonstrating the proportionate role of debt and equity in a company's asset financing scheme.

Payout Ratio

The percentage of a company's earnings that is paid out to shareholders in the form of dividends.