In an Efficient Market, Investors Will Only Find Positive-NPV Trading

question 11

True/False

In an efficient market, investors will only find positive-NPV trading opportunities if they have some form of competitive advantage over other investors.

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Definitions:

Elasticity Of Demand

A measure of how sensitive the quantity demanded of a good is to a change in its price.

Luxury Good

A good for which demand increases more than proportionally as income rises, in contrast to a "necessity good," for which demand is not related to income.

Total Revenue

The total amount of money a company receives from its sales of goods or services, calculated by multiplying the price per unit by the number of units sold.

Demand Elastic

Referring to a situation where the quantity demanded of a good or service significantly changes in response to a change in its price.