Question 1
You are certain that the restaurant industry's normal rate of return is 12%. You would expect a(n) ________ normal rate of return for a soft drink manufacturing industry that people consider much less risky than the restaurant industry.
◦ 12%
◦ less than 12%
◦ above 12%
◦ risk free (the rate on government bonds)
Question 2
The formula Δ
q/Δ
L represents
◦ total product.
◦ the average product of labor.
◦ the capital-to-labor ratio.
◦ the marginal product of labor.