You Have the Following Information You Want the Beginning Price-Weighted Index of These Two Stocks

question 71

Multiple Choice

You have the following information:
$\begin{array}{cccc}\text { Stock } & \text { Shares Outstanding } & \text { BOY Price } & \text { EOY Price } \\\text { L } & 3,000 & \$ 15 & \$ 28 \\\text { K } & 57,000 & \$ 31 & \$ 35\end{array}$

You want the beginning price-weighted index of these two stocks to be 500. Given this, what is the ending index value?

• A)408.33
• B)487.08
• C)511.19
• D)576.09
• E)612.24

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Definitions:

Tacit Collusion

A situation where firms in a market understand each other's behaviors and outcomes without direct communication, leading to a form of non-competitive equilibrium.

Antitrust Laws

Legislation enacted to prevent new monopolies from forming and police those that already exist to protect consumers and ensure fair competition in the marketplace.

Predatory Pricing

A strategy where a company sets very low prices to eliminate competition and establish a monopoly in the market.

Tacit Collusion

An unspoken, implicit understanding among competitors to avoid certain competitive behaviors, such as price cutting.