D. One-half of the nondiversifiable risk of the asset with a beta of 1.5

The monetary aggregate, M1, increases when

A) an individual cashes a check written by a business. B) an individual purchases clothes with a debit card. C) an individual switches funds from a savings account to a checking account. D) an individual buys groceries with a credit card.

When all firms and potential firms in a market have the same cost curves, the long-run equilibrium of a competitive market with free entry and exit will be characterized by firms

a. earning small but positive economic profits. b. facing the prospect of future losses. c. operating at the efficient scale. d. that work together to raise market prices.