You Want to Buy 100 Shares of Hotstock Inc

question 53

Multiple Choice

You want to buy 100 shares of Hotstock Inc.at the best possible price as quickly as possible.You would most likely place a

• A)stop-loss order.
• B)stop-buy order.
• C)market order.
• D)limit-sell order.

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Definitions:

Minimum Efficient Scale

The minimum efficient scale is the lowest point of production where a firm can achieve the economies of scale, reducing its cost per unit to the minimum.

Economic Profits

The surplus or profit gained by a firm after subtracting all its costs, including both explicit and implicit costs, from its total revenues.

Accounting Profits

The net income for a company calculated by subtracting total expenses from total revenues, according to standard accounting practices.

Short Run

A period of time in economics during which at least one input, such as plant size, is fixed and cannot be changed.