The Value of a Share of Stock Currently Selling for $50

question 180

Multiple Choice

The value of a share of stock currently selling for $50 after a 1 for 5 split is:

• A) $10
• B) $200
• C) $250
• D) $500

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Definitions:

Total Utility

The total satisfaction or benefit derived by a consumer from consuming a particular quantity of goods or services.

Marginal Utility

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.