Profit is maximized at the output at which marginal revenue exceeds marginal cost by the greatest margin

Barney Oats Co produces 5 varieties of flavored oats. A market survey done by the company revealed that its competitor Sloan co. had a larger share in the market. It was found out that Barney's share of output was one-tenth that of Sloan Co Immediately

afterward, the CEO of Barney Oats decided to reduce the number of flavors and reassign tasks to workers based on their skills. Will the manager's decision increase the output of Barney Oats? Give reasons to support your answer.

For heavily traded assets like stocks and bonds, arbitrage:

A. will equalize rates of return across all stocks and bonds. B. will drive up rates of return on all assets. C. is a lengthy process because of the large volume of transactions. D. will often equalize rates of return among similar assets within minutes.