ECON 1202 Lecture 20: Financial System

In the Salop's Model, the equilibrium number of firms is?

A. decreasing with fixed costs and decreasing with transportation costs

B. increasing with fixed costs and decreasing with transportation costs

C. increasing with fixed costs and increasing with transportation costs

D. decreasing with fixed costs and increasing with transportation costs

The "efficient frontier" indicates:

A) alternatives with neutral combinations of risk and return

B) alternatives with the highest returns

C) alternatives with the best combination of risk and return

D) alternatives with no risk

The "efficient frontier" indicates:

A) alternatives with neutral combinations of risk and return

B) alternatives with the highest returns

C) alternatives with the best combination of risk and return

D) alternatives with no risk