Competitive Firms Have

question 172

Multiple Choice

Competitive firms have:

• A)horizontal demand curves and can sell only a limited amount at each price
• B)horizontal demand curves and can sell as much as they want at the market price
• C)downward-sloping demand curves and can sell as much as they want at the market price
• D)downward-sloping demand curves and can sell only a limited amount at each price

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Definitions:

Risk-Averse

A characteristic describing an investor or decision-maker who prioritizes avoiding loss over making a gain, typically favoring safer investments.

Mean-Standard Deviation Graph

The mean-standard deviation graph is a visual representation used in finance to display expected returns (mean) of an investment against its risk (standard deviation).

Utility Function

A mathematical representation in economics that defines the level of satisfaction or utility an individual receives from different bundles of goods and services.

Expected Return

The average of the probability distribution of possible returns for an investment, symbolizing its anticipated profitability.