The ceteris paribus assumption is used in economic analyses in order to:
a. cover special cases
b. include all relevant factors.
c. add realism.
d. keep the relationship between the two variables isolated from other events.
d
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Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $4, what is the value of marginal product of the 4th worker?
A) $240 B) $70 C) $10 D) $40
Consider the following statements when answering this question;
I. The variance of the returns of an investor's portfolio can be reduced by selling assets from the portfolio, and investing the proceeds in other assets where returns are positively correlated with the portfolio's remaining assets. II. The value of complete information is always positive. A) I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) I and II are false.