Refer to the graph below. There are diseconomies of scale:

The vertical intercept of the Security Market Line is determined by the:

A. beta of the market portfolio. B. discount rate. C. risk-free interest rate. D. risk premium.

Ceteris paribus, if the demand curve for milk is inelastic and the government decides to impose a tax on it, there is going to be a relatively ________ price hike to eliminate the excess ________ caused by the tax.

A. large; supply B. large; demand C. small; supply D. small; demand