________ Is the Term Used When a Firm Decides to Consolidate

question 10

Multiple Choice

________ is the term used when a firm decides to consolidate its stock into a lesser number of outstanding shares.

• A)Double down
• B)Double up
• C)Reverse split
• D)Depreciating split

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Definitions:

Optimal Scale

The size of a company or level of production that minimizes costs and maximizes efficiency and profit.

Long-run Equilibrium

A state in which all inputs can be adjusted by firms, market supply meets demand, and no economic profit is earned by firms in a perfectly competitive market.

Long-run Equilibrium

A state in an economy or market where all factors of production and economic variables are balanced, and there are no external pressures forcing change.

MR = MC

The condition under which profit is maximized, where marginal revenue equals marginal cost.