The ________ States That Any Increase in Price Paid for Shares

question 49

Multiple Choice

The ________ states that any increase in price paid for shares tendered must be offered to all shareholders, even those who have previously tendered their shares.

• A) pro rate rule
• B) fair price rule
• C) Williams Act
• D) antifraud provision of the Securities and Exchange Commission

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Definitions:

Returns to Scale

The change in output resulting from a proportional change in all inputs, where increases can be constant, increasing, or decreasing.

Long-Run Average Cost

The average cost per unit of output where all inputs, including capital, are variable in the long term.

Marginal Cost

The costs entailed in generating an extra unit of a product or service.

Economies of Scale

The reduction in per-unit production costs resulting from an increase in the scale of production.