A Firm Can Sell as Much as It Wants at a Constant

question 57

Multiple Choice

A firm can sell as much as it wants at a constant price. Demand is thus

• A)perfectly inelastic.
• B)perfectly elastic.
• C)relatively inelastic.
• D)relatively elastic.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share of the profits.

Earnings Per Share

A company's profit divided by the number of common shares outstanding, indicating the profitability on a per-share basis.

Stockholders' Equity

Represents the residual value of assets minus liabilities, indicating the ownership interest of shareholders in a company.

Earnings Per Share

A financial metric that calculates the portion of a company’s profit allocated to each outstanding share of common stock, indicating a company's profitability.