Investments That Have Earned the Highest Rates of Return Over

question 51

Multiple Choice

Investments that have earned the highest rates of return over time also have

• A)the lowest risk.
• B)the highest standard deviation of returns.
• C)the largest market capitalization.
• D)the least sensitivity to inflation.

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Definitions:

Short-Run Profits

Profits earned by a firm in a period where at least one factor of production is fixed.

Perfectly Competitive

Refers to a market structure where many firms sell an identical product, and no single firm can influence the market price due to its small market share.

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Short Run

A period in economics during which some factors of production are fixed, making it impossible to change the level of output quickly.