A Type of Index That Weighs Each Company by Its

question 50

Multiple Choice

A type of index that weighs each company by its total market value as a percentage of the total market value for all firms is:

• A)an equal-weighted index.
• B)a value-weighted index.
• C)an equally-weighted index.
• D)a price-weighted index.

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Definitions:

Short Run

A period in which at least one factor of production is fixed and cannot be fully adjusted.

AVC Curve

The average variable cost curve, which shows how the unit variable cost of production changes with the level of output.

Profit-Maximizing

The process or strategy of adjusting production and pricing to achieve the highest possible profit margins for a business or firm.

Firm

A business organization that sells goods or services in order to make a profit.