Exhibit 12-5 Refer to Exhibit 12-5

question 136

Multiple Choice

Exhibit 12-5 Refer to Exhibit 12-5.A profit-maximizing firm in a perfectly competitive industry will produce ____ units of output if the market price equals $45.

• A) 800
• B) 650
• C) 450
• D) 200

---

Definitions:

Annual Dividends

The total dividend payment a shareholder receives from a company over the course of a year.

Projected Increase

An estimate or forecast of how much a certain metric, such as sales or profits, is expected to grow in a future period.

Dividend Growth

The rate at which a company's dividend payments increase over time, reflecting its ability to continually raise the amount of money returned to shareholders.

Stock Price

The cost of purchasing a share of a company, reflecting the market's valuation of the company at any given time.