Use the Following to Answer Question(s)

question 164

Multiple Choice

Use the following to answer question(s) :
Exhibit: Total Revenue, Total Cost, and Economic Profit

-(Exhibit: Total Revenue, Total Costs, and Economic Profit) Which of the following is true?

• A) As output increases the slope of the total revenue curve does not change.
• B) The total cost curve becomes steeper and steeper as output increases from 0 to 10,000 pounds of output.
• C) Total revenue and total cost curves never have the same slope.
• D) None of the above is true.

---

Definitions:

Put Option

A financial contract giving the buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Striking Price

The predetermined price at which the holder of an option can buy or sell the underlying security.

Cumulative Feature

A characteristic of certain preferred stocks or securities where unpaid dividends accumulate and must be paid before dividends to common stockholders.

Common Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders known as common shareholders.