Refer to the Information Provided in Figure 15

question 152

Multiple Choice

Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. Figure 15.5
-Refer to Figure 15.5. Assume The Custom Sweater Shop has fixed costs of $500 and is a monopolistically competitive firm. At the profit-maximizing output in the short run, the firm ________ of $46.

• A) has an average total cost
• B) earns a profit
• C) should set a price
• D) has an average variable cost

---

Definitions:

Dividend Declared

A payment announced by a company's board of directors to be distributed among shareholders.

Capital in Excess

Funds received by a company from selling shares at a price above the par value, also known as additional paid-in capital.

Stock Dividend

A distribution of additional shares of a company's stock to shareholders instead of cash payouts, based on the number of shares they already own.

Retained Earnings

These are profits that a company has earned to date, less any dividends or other distributions paid to investors.