Simon Purchased 1,000 Shares of ABC Stock for $8,000 on April

question 25

Multiple Choice

Simon purchased 1,000 shares of ABC stock for $8,000 on April 4.On March 1 he had sold 1,500 shares of ABC stock for $9,000 that he had purchased three months earlier for $15,000.What is Simon's realized and recognized loss, respectively, on the March 1 stock sale?

• A)$6,000, $6000
• B)$6,000, 0
• C)$6,000, $4,000
• D)$4,000, $6,000

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Definitions:

Average Total Cost (ATC)

The total cost divided by the quantity of output produced, representing the per-unit cost of production.

Marginal Revenue (MR)

The additional financial gain a firm secures by selling one more unit of its product or service.

Purely Competitive

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and complete information, leading to price taking behavior.

Equilibrium Price

The market price at which the quantity of goods demanded equals the quantity supplied, leading to market stability.