True or False. 8. A portfolio\'s performance is its yield to the holder. ____ 9.

8. True. Portfolio performance reports hold the entire transaction and returns that a stock fetches.

ID: 1125693 • Letter: T

Question

True or False.

8. A portfolio's performance is its yield to the holder.

____ 9. Investing in risky assets in the hope of earning profits is called speculation.

____ 10. Perfect competition is characterized by numerous firms.

____ 11. In perfect competition there are differences in the products sold by various firms.

____ 12. In the long run, a perfectly competitive industry tends to develop differentiated products.

____ 13. In perfect competition, a firm's marginal revenue equals the price of the product.

____ 14. In the short run, a perfectly competitive firm can make a profit, a loss, or go out of business.

____ 15. If a firm sells its output at a price greater than AVC, it will earn economic profit.

____ 16. In the short run, a firm may have accounting losses and remain in operation.

____ 17. In the short-run if TR < TC, a perfectly competitive firm will always shut down.

____ 18. In the short run, if price is below AC, maximizing profits really means minimizing total losses.

____ 19. In the short-run, only a limited number of new firms may enter a perfectly competitive market.

____ 20. The market demand schedule in perfect competition is horizontal.

____ 21. A firm that is earning zero economic profit should go out of business.

____ 22. In the long run, a perfectly competitive firm earns no accounting profits.

____ 23. In long-run equilibrium, a firm in perfect competition has no economic profit.

____ 24. The number of firms in a perfectly competitive industry is not fixed in the long run.

____ 25. Firms in a perfectly competitive market produce at minimum average cost in the short run and the long run.

____ 26. A pure monopoly is defined as having only one seller.

____ 27. Pure monopoly markets are very common in the real world.

____ 28. The two basic reasons why a monopoly exists are barriers to entry and cost advantages.

____ 29. The key element in preserving a monopoly is keeping rivals out of the market.

____ 30. Owning a patent can provide a firm with monopolistic power.

8. True.

Portfolio performance reports hold the entire transaction and returns that a stock fetches.

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