Which of the Following Is a Short-Run Adjustment

question 98

Multiple Choice

Which of the following is a short-run adjustment?

• A)Toyota builds an automobile plant in Kentucky.
• B)Faced with increasing enrollment, a private college builds a new School of Business building.
• C)Because of staggering losses, three insurance companies exit the industry.
• D)People's Bank hires two new tellers to meet increased demand for customer services.
• E)Shaveco enters the razor blade market with a new product, produced in the United States.

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Definitions:

Issue Costs

Expenses associated with issuing new stocks or bonds, including underwriting, legal, and registration fees.

Subscription Price

The cost at which existing shareholders can purchase additional shares of stock in a company, often at a discount to the current market price.

Market Price

The present trading value at which a service or asset is available for sale or purchase.

Rights Offering

An opportunity for current shareholders to purchase additional shares at a discount, before the company offers them to the general public.