Use These Option Quotes to Answer This Question

question 72

Multiple Choice

Use these option quotes to answer this question:

-You own 700 shares of ZZ Industries stock which you purchased for $38.40 a share.You would like to have the right to sell your shares for $35.00 a share.What will be the cost to obtain this right?

• A) $0.40
• B) $0.90
• C) $7.00
• D) $476.00
• E) $900.00

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Definitions:

Inputs

Resources used in the production process to produce goods or services, including labor, raw materials, and capital.

Output

The total amount of goods or services produced by a company, industry, or economy over a given period.

Diseconomies of Scale

The phenomenon where production costs per unit increase as the scale of operation enlarges, often due to inefficiencies or increased complexity.

Constant Returns to Scale

A situation in economic production where increasing all inputs by any proportionate amount results in output increasing by the same proportion.