Recall the Example of Increasing-Cost Industries Such as Apartments,why Is

question 44

Multiple Choice

Recall the example of increasing-cost industries such as apartments,why is the supply curve for apartments positively sloped?

• A)Land prices increase with total output of the industry.
• B)Tenants pay lower rent prices.
• C)Average cost decreases.
• D)none of the above

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Definitions:

Preference Shares

A type of stock that provides holders with priority over common stockholders in the distribution of dividends and assets upon liquidation.

Fair Value

The sum likely to be fetched for selling an asset or the expense incurred to pass on a liability, within a structured deal among participants in the market at the time of assessment.

NCI

Non-Controlling Interest, which refers to shareholders' equity in a subsidiary not attributable to the parent company.