The Diagram Below Shows Supply,demand,and Quantity Exchanged of Monday Matinee

question 27

Multiple Choice

The diagram below shows supply,demand,and quantity exchanged of Monday matinee movie tickets.Assume it is a perfectly competitive market.
FIGURE 12- 4
-Monopoly is allocatively inefficient because

• A)the firm has no incentive to maximize profits.
• B)the opportunity cost exceeds the marginal cost of the last unit produced.
• C)the marginal cost exceeds the average cost for the last unit produced.
• D)the price exceeds the marginal cost of the last unit produced.
• E)lower costs could be achieved.

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Definitions:

Common Stock

A type of equity ownership in a corporation, representing a claim on a portion of the company's profits and assets.

Market Value

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the open market.

Dividend

A share of a company's profits distributed to its shareholders, usually on a regular basis, as determined by the board of directors.

Dividend Yield

Dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.