Answer:
E. If the market risk premium increases by 1%, then the required return will increase by 1% for a stock that has a beta of 1.0.
Answer:
increase
Explanation:
Transaction cost is the cost needed for every exchange. This cost can be external or internal. External transaction cost comes from the cost to do an exchange with a second party while internal cost comes from the company itself.
The Martinez Legal Firm acquired a competitor so their business size will increase for sure. Larger businesses will become more complex and need more management. These will, in turn, increase the internal transaction cost.
Work refers to any useful activity.
<u>Answer:</u>
<em>The factors of production typically include land, labor, capital, entrepreneurship, and the state of technological progress.</em>
<u>Explanation:</u>
In economics, capital typically refers to money. But money is not a factor of production because it is not directly involved in producing a good or service.
Instead, it facilitates the processes used in production by enabling entrepreneurs and company owners to purchase capital goods or land or pay wages. For modern mainstream economists, capital is the primary driver of value.
