Match the Term with Its Definition

question 1

Multiple Choice

Match the term with its definition.
-The right of stockholders to buy new shares of stock before they are offered to the public

• A)corporation
• B)limited partnership
• C)management team
• D)organizational test
• E)piercing the corporate veil
• F)preemptive right
• G)reciprocation
• H)social capital
• I)strategic alliance

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Definitions:

LRAC Curve

Stands for Long-Run Average Cost curve, which shows the lowest average cost at which a firm can produce any given level of output in the long term when all inputs are variable.

Decreasing-Cost Industry

An industry in which production costs decrease as the industry grows and output increases, often due to economies of scale.

LRAC Curve

The Long-Run Average Cost curve, showing the lowest possible cost of producing different levels of output when all inputs are variable.

Increasing-Cost Industry

An industry where production costs increase as output grows, often due to resource limitations or regulatory constraints.