Firms Have Excess Capacity

question 4

Multiple Choice

firms have excess capacity.

• A)1 only
• B)2 and 3
• C)1 and 2
• D)3 only
• E)1, 2, and 3

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Definitions:

Ownership Interest

A legal or equitable claim in a company or property, signifying a portion of ownership by an individual or entity.

Stock Investment

Stock investment involves purchasing shares of a company's stock in expectation of earning a return from dividends or capital appreciation.

Debt Investments

Financial assets involving funds lent to an entity (corporate or governmental) that promises to return the principal along with interest on a specified timeline.

Face Value

The nominal value stated on a financial instrument, such as a bond or stock certificate.