Examlex

Solved

You Want to Invest in a Firm Whose Profits Show

question 41

Multiple Choice

You want to invest in a firm whose profits show small fluctuations throughout the business cycle.Which of the following would you invest in?


Definitions:

Competitive Price

The market price at which goods are sold in a perfectly competitive market, where no single buyer or seller can influence the price.

Fixed-Coefficient Technology

A production process where input ratios are constant and cannot be substituted for one another in the production process.

Demand Function

A mathematical relationship that describes how the quantity demanded of a good or service varies with changes in its price, and possibly other factors.

Horizontal Labor Supply Curve

A graphical representation suggesting that a worker's willingness to work does not change regardless of wage increases over a certain range.

Related Questions