In a Constant-Cost Industry, Price Always Equals

question 99

Multiple Choice

In a constant-cost industry, price always equals:

• A) LRMC and minimum LRAC.
• B) LRMC and LRAC, but not necessarily minimum LRAC.
• C) minimum LRAC, but not LRMC.
• D) LRAC and minimum LRMC.
• E) minimum LRAC and minimum LRMC.

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Definitions:

Date of Declaration

The specific date on which a company's board of directors announces the distribution of a dividend or other corporate action.

Marketable Equity Securities

Financial instruments that represent ownership in public companies and can be easily bought or sold in public stock markets.

Realized Gain

Profit resulting from the sale of an asset or investment for more than its purchase price.

Stock Dividend

A disbursement from a corporation to its shareholders, using shares as the medium instead of cash.