Choose the Word or Phrase in [ ] Which Will

question 19

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-One should look for companies with steadily [increasing | decreasing] book value per share.

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Definitions:

Production

The process of combining inputs to make goods or services.

LAC Curves

The Long-Run Average Cost curves, which show the minimum average cost of production at different levels of output.

LMC Curves

Abbreviation for Long-Run Marginal Cost curves, which represent the cost to produce one additional unit of goods when all inputs can be varied.

Returns to Scale

The change in output resulting from proportional change in all inputs (factors of production); can be increasing, constant, or decreasing.