In the Long Run,a Fall in the Input Price Causes

question 111

Multiple Choice

In the long run,a fall in the input price causes less of an increase in factor demand

• A)if the increase of product supply affected price.
• B)if the market price will decrease too.
• C)if the market price remain constant.
• D)if the factor demand is more elastic.

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Definitions:

Adjusted Beta

A beta value modified to account for a stock's historical volatility and tendency to revert to the market mean.

Well-Diversified Portfolio

An investment portfolio that spreads risk across various asset classes, industries, or geographical regions to reduce the impact of any single investment's poor performance.

Single Index Model

A simplified model to estimate security returns that relates these returns to a single market index, accounting for market risk.

Portfolio's Sigma

Portfolio's Sigma, often synonymous with standard deviation, quantifies the overall risk or volatility of a portfolio, indicating how its returns can vary from the expected return.