Which Statement Is Correct

question 14

Multiple Choice

Which statement is correct?

• A)Issued options are always anti-dilutive.
• B)Issued options are always dilutive.
• C)Purchased options are always anti-dilutive.
• D)Purchased options are always dilutive.

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Definitions:

Competitive Increasing-cost Industry

An industry where supply costs increase as output expands, often because resources become scarcer or harder to obtain as production grows.

Long-run Equilibrium

A state in which all firms in a perfectly competitive market earn zero economic profits, with no incentives for new firms to enter or existing firms to exit.

Decrease in Demand

A situation where consumers' willingness and ability to purchase a product at all price levels declines, represented by a leftward shift of the demand curve.

Constant-cost Industry

An industry in which the input prices and production costs remain stable even as the industry output changes.