You Ask Your Broker to Buy 500 Shares of Microsoft,if

question 36

Multiple Choice

You ask your broker to buy 500 shares of Microsoft,if it is available,at a price less than or equal to $26.This is an example of a ________ order.

• A) market
• B) limit
• C) discount
• D) stop
• E) control

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Definitions:

Natural Monopoly

A market condition where due to high fixed costs or unique resources, a single company can supply a product or service at a lower cost than any potential competitors.

Average Cost

The cost per unit of output, computed by dividing the total cost of production by the number of units produced, often used to assess the efficiency and profitability of production processes.

Antitrust Laws

Legislation enacted to prevent new monopolies from forming and to break up those that already exist in order to ensure fair competition in the market.

Social Welfare

A system that provides assistance to needy individuals and families in a society through various forms of financial aid, health care, and social services.