Exhibit 21-11 ​

question 73

Multiple Choice

Exhibit 21-11
​

-Refer to Exhibit 21-11. Average total cost of the sixth unit of output is

• A)$50.
• B)$100.
• C)$300.
• D)$90.83.

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Definitions:

Dividend Policy

A company's approach to distributing profits back to its shareholders either in the form of cash payments or shares of stock.

Firm Value

The total value of a company, determined by its assets, earnings, cash flow, and market perception.

Market Imperfections

Occur when conditions for perfect market competition are not met, leading to inefficiencies such as monopolies or information asymmetries.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, to shareholders.