Banz's Research on the Small Firm Effect Was Criticized Because

question 89

Multiple Choice

Banz's research on the small firm effect was criticized because

• A)the stocks were too small.
• B)it was highly influenced by a depression and a major war.
• C)the stocks were too large.
• D)it was highly influenced by inflation and a devaluation of the dollar.

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Definitions:

Marginal Costs

The additional cost incurred by producing one more unit of a good or service.

Average Costs

Total costs (fixed and variable) divided by the total quantity of output produced, representing the cost per unit of production on average.

Variable Costs

Costs that change in proportion to the good or service that a business produces.

Shut Down

The cessation of operations, often temporarily, by a business or organization.