Refer to the Above Diagram for Athletic Shoes

question 109

Multiple Choice

Refer to the above diagram for athletic shoes.If the current output of shoes is Q₁, then:

• A)society would consider additional units of shoes to be more valuable than alternative products.
• B)society would consider additional units of shoes to be less valuable than alternative products.
• C)society would experience a net loss by producing more shoes.
• D)resources are being allocated efficiently to the production of shoes.

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Definitions:

Dividends Per Share

The amount of dividend that a company pays out to each shareholder, expressed on a per share basis.

Common Stock

A type of security that represents ownership in a corporation, entitling the holder to vote on corporate matters.

Par Value

The face value of a bond or stock as stated by the issuing company.

Cash Dividend

A disbursement by a company to its stockholders, typically coming from earnings.