Evaluate the Following Statement in the Context of Business-Stealing and Product-Variety

question 66

Essay

Evaluate the following statement in the context of business-stealing and product-variety externalities: "We have too many student apartments in this town already. Statistics show that vacancy rates average 15 percent during any given semester."

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Definitions:

Outstanding Stock

Shares that have been issued by a company and are held by investors, including both public shareholders and company insiders.

Net Income

The total profit of a company after all expenses, including taxes and costs, have been subtracted from total revenues.

Brokerage Commission

A charge imposed by a broker for carrying out trades or offering specific services.

Dividends

Earnings distributed to shareholders from a company's profit, generally in the form of cash or additional shares.