CFA-Level-I Exam Dumps | Beer and wine are the only goods produced in a perfectly competitive economy. Each is produced in a constant-cost

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Question 406/639

Beer and wine are the only goods produced in a perfectly competitive economy. Each is produced in a constant-cost industry and currently in equilibrium. Suddenly there is a permanent shift in the preferences of consumers in favor of beer and away from wine.
As a wine producer, in the short run, your best strategy is to:

A. keep operating as long as you can cover your average costs.

B. increase the price of your wine to compensate for decreased sales.

C. continue operating as long as you can cover your average variable costs.

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The rent is...; Question 461: The audit committee should ensure that if there are any conf...; Question 462: An automatic machine inserts mixed vegetables into a plastic...; Question 463: A venture capital investment is expected to yield of payoff ...; Question 464: Which of following correctly specifies the level of the firm...; Question 465: If the price of tickets to Disney World increases from $30 t...; Question 466: If the existing money stock is $100 billion, the nominal GDP...; Question 467: A futures contract whose underlying good is U.S. Treasury bi...; Question 468: Reclassification of capitalized interest as an expense will ...; Question 469: When regional integration results in the replacement of high...; Question 470: Sampling error is:; Question 471: If the weekly return is 0.15%, the compound annual return is...; Question 472: If a researcher testing the null hypothesis H : 53 u 57 vs. ...; Question 473: Consider the following conditions of ending inventory and th...; Question 474: One of the discretionary accounts managed by Bill Farnsworth...; Question 475: A private investment in public equity allows a private inves...; Question 476: The risk of a preferred stock is based on the:...; Question 477: A company in Hong Kong, where there is no taxes on dividends...; Question 478: As compared to the short-run supply curve, what should the l...; Question 479: Which of the following is correct about a probability distri...; Question 480: Company Z, a U.S.-based firm, enters into a currency swap. U...; Question 481: One feature common to both the trading and available for sal...; Question 482: Which statement is false regarding the ideal exchange rate r...; Question 483: If a legislature decides to reduce poverty by passing a law ...; Question 484: Oakmont Corporation issued $ 100,000 of callable bonds on 1/...; Question 485: According to SAS 99, which of the following is least likely ...; Question 486: Refer to the graph below. Assuming a consumer has $5 to spen...; Question 487: Which of the following is NOT one of the major areas where f...; Question 488: Starr Co. had 1997 sales of $210. Sales for 1998 increase by...; Question 489: A big value for F will result in:...; Question 490: What could cause a company to have negative cash flow from o...; Question 491: If an industry experience patterns that do not correlate wel...; Question 492: Price discrimination is the practice of:...; Question 493: Which of the following Treasury issues are quoted on the bas...; Question 494: A 10 year, 8% coupon bond has a price of 97.21 of 100 par. I...; Question 495: In order to calculate a bond's present value we use the...; Question 496: In 2001, a portfolio with 6 stocks had the following total r...; Question 497: Features of a firm's technology that lead to falling long-ru...; Question 498: Which of the following temporary differences ordinarily crea...; Question 499: Given the following spot rates: The arbitrage-free value of ...; Question 500: An analyst has extracted the following information from the ...; Question 501: The time that it takes to find a taxi when leaving a restaur...; Question 502: Which of the following is not an example of an affirmative (...; Question 503: In a monopolistic competition,; Question 504: Clay's Construction Company does work on large construction ...; Question 505: Which of the following statements is correct in terms of Sta...; Question 506: Assume the following information about an equally-weighted i...; Question 507: All of the following securities may affect the numerator in ...; Question 508: On the same test, Tom scored at the 87th percentile, and Bil...; Question 509: The market portfolio M is:; Question 510: Which of the following is the most valid argument for includ...; Question 511: To maximize profits, a perfectly competitive firm should do ...; Question 512: You are an analyst and you have studied Firm Q's financial s...; Question 513: David Smith is a CFA member with supervisory responsibilitie...; Question 514: Suppose a t-test for the hypothesis that H(O): u = 0 vs. H(A...; Question 515: Warner Corporation reported net income in excess of its net ...; Question 516: In 2007 the book value of a company's inventory was $5 milli...; Question 517: One year ago, Sandra Gordon purchased 200 shares of a Pacifi...; Question 518: Which of the following statements are true with respect to a...; Question 519: The repurchase rate is 3.60% on a loan of 2 days for which $...; Question 520: Increasing the confidence level, while keeping other values ...; Question 521: A researcher is studying the number of trees that contain a ...; Question 522: If a firm has a monopoly over the sale of photographic paper...; Question 523: The capital asset pricing model (CAPM) states that:...; Question 524: You have a portfolio of 4 stocks, A, B, C and D. Exactly 25%...; Question 525: Toward the top of the economic cycle, as final demand starts...; Question 526: Why is systematic risk considered important?...; Question 527: A brokerage firm, which has $10 million in S&P500 stocks...; Question 528: All of the following statements about accounting practices a...; Question 529: Market neutral hedge funds are best described as:...; Question 530: What are potential liabilities of a company such as possible...; Question 531: Consider the following information about a fund. The fund ha...; Question 532: Assuming all other factors remain unchanged, which one of th...; Question 533: A futures contract on a stock index can be settled on the ex...; Question 534: The country with a comparative advantage in the production o...; Question 535: Which of the following statements is (are) true with respect...; Question 536: A 1993 survey conducted by the local paper in Columbus, Ohio...; Question 537: Which of the following loans is typically not secured?...; Question 538: Steve is more risk-averse than Edie. On a graph that shows S...; Question 539: On May 25th, 2004, Dove Landing Corporation bought 2,500 sha...; Question 540: Which set of circumstances is most likely to result in a nar...; Question 541: Janet Ver is a portfolio manager managing large institutiona...; Question 542: What statement(s) is/are true? I). Deferred taxes are determ...; Question 543: Which trade policy will have no impact on government revenue...; Question 544: The economy is projected to emerge from a recession soon. Th...; Question 545: Which of the following is NOT a drawback of fund of funds in...; Question 546: Which element is "defined" in a defined benefit pension plan...; Question 547: A population is:; Question 548: When a market is in long-run equilibrium, then...; Question 549: On June 1, 2008, the 12 3/8 May '14 Treasury bond is quoted ...; Question 550: The Capital Market Line:; Question 551: What do we call the value z that is computed using sample da...; Question 552: Financial statements are an input into which step in the fin...; Question 553: Which statement(s) is/are FALSE? I). Under the LIFO method o...; Question 554: A coupon bond with duration of 4.75 has an initial price of ...; Question 555: The employer's pension expense is the amount that it is obli...; Question 556: If an effective minimum price is imposed by the government, ...; Question 557: Given equal circumstances, which inventory method is the bes...; Question 558: The sampling distribution of the sampling mean is:...; Question 559: Which of the following statements is not true of forward con...; Question 560: A firm intends to take on a significant amount of new debt i...; Question 561: Suppose that all of the fast-food restaurants in the entire ...; Question 562: According the Global Investment Performance Standards (GIPS)...; Question 563: Which of the following will increase the demand for money?...; Question 564: The mean return in 1999 for a stock mutual fund of large com...; Question 565: Which of the following will give rise to a deferred tax liab...; Question 566: In terms of CFA Institute's Standards of Professional Conduc...; Question 567: An industry experiencing rapidly increasing demand and impro...; Question 568: The Ricardian model concludes that:...; Question 569: If an experiment results in one of two dichotomous responses...; Question 570: Beal, Inc. intends to lease a machine from Paul Corporation....; Question 571: Because of the timing lags involved, fiscal policy can be:...; Question 572: Assume a student received the following grades for the semes...; Question 573: For investments made by banks, the risk tolerance is typical...; Question 574: An increase in real output will cause which of the following...; Question 575: Beta and standard deviation are common measures of investmen...; Question 576: Average income increases from $20,000 p.a. to $22,000 p.a. Q...; Question 577: A student's grade in a course is determined by her score on ...; Question 578: Which of the following is true for monopolistically competit...; Question 579: A confidence interval was used to estimate the proportion of...; Question 580: The required return of a 5-5/8% coupon, semi-annual payment ...; Question 581: The joint probability of three events is given as 35%. Their...; Question 582: Kiawah Corp. sold bonds at a price of 96.2 plus accrued inte...; Question 583: Credit investors may use the financial information to make e...; Question 584: Consider a level perpetuity of $250.00 with the first paymen...; Question 585: In Harvey, N.D. three local banks have issued no-interest lo...; Question 586: A population is known to have a left skewed distribution wit...; Question 587: The book value of property, plant, and equipment is the ____...; Question 588: A firm should cease to do business when:...; Question 589: A share of stock is expected to pay a dividend of $1.00 one ...; Question 590: A job paid $8,700 in 1970, when the CPI was 29. In 2011, the...; Question 591: The Allen Corporation had 100,000 shares of common stock out...; Question 592: Operating leverage is a measure of the...; Question 593: The value of an option-free, 10-year, 7.5% coupon bond is $1...; Question 594: Select the incorrect statement(s) regarding good corporate g...; Question 595: An 8%, 20-year corporate bond is priced to yield 9%. The Mac...; Question 596: Which of the following statements concerning the Security Ma...; Question 597: An investment of $275 grows to $400 in 3 years. The holding ...; Question 598: Two basic assumptions of technical analysis are that securit...; Question 599: Technical analysis assumes that shifts in trends can be dete...; Question 600: Which of the following assumptions does the Gordon growth di...; Question 601: Your company purchased $10,000 worth of inventory on January...; Question 602: Which ratio is used to measure a company's internal liquidit...; Question 603: As the futures contract approaches maturity, a commodity wil...; Question 604: Companies with defined benefit plans are required per SFAS N...; Question 605: Bramley Company has declared a 20% stock dividend. At the cl...; Question 606: Which of the following is an example of ordinal data?...; Question 607: Which of the following statements about venture capital inve...; Question 608: Which one of the following would decrease the length of the ...; Question 609: Assumptions of the Markowitz model include which of the foll...; Question 610: Peter Chairly is a energy analyst with Tableless Brokers. He...; Question 611: Which one of the following requirements will not help to ens...; Question 612: An investor is considering a 20-unit apartment building that...; Question 613: The crowding-out model implies that a...; Question 614: In accounting for a lease transaction classified as a capita...; Question 615: On December 31, 2003, Acadia Corp. leased machinery with a f...; Question 616: Which of the following relationships is/are true in an oligo...; Question 617: You are a corporate treasurer who needs to raise money. You ...; Question 618: Which statement is FALSE?; Question 619: Points under the capital allocation line are ______ by inves...; Question 620: A flag pattern is similar to a:...; Question 621: FasGrow is a no growth firm and has two million shares outst...; Question 622: Which of the following is not included in investing activiti...; Question 623: What is the effect on the basic earnings per share (EPS) equ...; Question 624: A positively skewed distribution:...; Question 625: Equilibrium quantity in markets characterized by oligopoly i...; Question 626: The mean of sample with a known population variance of 25 wa...; Question 627: Based on the "A Manual for Investors", investors should ensu...; Question 628: Empirical probability is:; Question 629: Currently the market in a stock is "$30.12 bid, $offered at ...; Question 630: BWT, Inc. shows the following data in its financial statemen...; Question 631: We would like to refer all probability statements to one set...; Question 632: ABC Co. uses a defined benefit pension plan. At year-end the...; Question 633: Barklay Franton's firm is an all-equity firm that has earnin...; Question 634: Which of the following statements about yield curves is true...; Question 635: Which factor generally leads to a high competitive industry?...; Question 636: Ashley Corporation constructed an office building for its ow...; Question 637: If a constant were to be added to a set of scores, the stand...; Question 638: Suppose Georgia was the only state that produced peaches. If...; Question 639: Which of the following flow assumptions is not acceptable un...

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