You Sold Short 150 Shares of Common Stock at $27

question 39

Multiple Choice

You sold short 150 shares of common stock at $27 per share. The initial margin is 45%. Your initial investment was

• A) $4,800.60.
• B) $12,000.25.
• C) $2,250.75.
• D) $1,822.50.

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Definitions:

Monopolistically Competitive

A market structure characterized by many firms offering products that are similar but not identical, allowing for some degree of market power.

Average Total Cost

Total cost divided by quantity of output produced. Also referred to as average cost.

Marginal Decision Rule

A strategy in economics where decisions are made based on the additional benefits and costs of a small change in the production or consumption.

MC < MR

A condition where marginal cost is less than marginal revenue, suggesting that increasing production can lead to higher profits.