If investors showed less of a preference for investing in war-related companies, then it would be expected that the stock prices for those companies would:
A. Increase, and the rates of return would decrease relative to other companies
B. Decrease, and the rates of return would increase relative to other companies
C. Decrease, but the rates of return would stay the same relative to other companies
D. Decrease, and the rates of return would decrease relative to other companies
B. Decrease, and the rates of return would increase relative to other companies
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If price is equal to short-run average variable cost, the firm is at the point known as:
a. the break even point. b. the profit maximizing point. c. the shutdown point. d. the revenue maximizing point.
If the demand for a product is elastic, then:
A. A higher tax on the product will generate more tax revenue B. A higher tax on the product will generate less tax revenue C. Total revenue will decrease as price decreases D. Total revenue will remain constant as price increases