A risk premium is
A) a measure calculated to reflect the riskiness of future profits.
B) subtracted from the discount rate when calculating the present value of a future stream of risky profits.
C) lower the more risky the future stream of profits.
D) an additional compensation paid to the workers of a business enterprise.
Correct Answer:
Verified
Q4: In a perfectly competitive market,
A) all firms
Q5: Economic profit is
A) the difference between total
Q6: A price-setting firm
A) can lower the price
Q8: Consider a firm that employs some resources
Q8: Economic profit
A) is a theoretical measure of
Q9: Which of the following statements is true?
A)
Q10: The principal-agent problem arises when
A) the principal
Q11: Moral hazard
A) occurs when managers pursue maximization
Q12: When economic profit is positive,
A) total revenue
Q54: Which of the following statements is false?
A)Explicit
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