Consider a Firm That Has Dual-Class Shares with 250 Million

question 36

Multiple Choice

Consider a firm that has dual-class shares with 250 million Class A shares (having 1 vote each) and 75 million nonlisted Class B shares having 10 votes each.The shares are otherwise identical.If one requires 51% of the votes to control the firm,what number of Class B shares must one control?

• A)37.5M
• B)51.0M
• C)125.0M
• D)162.5M

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Definitions:

Marginal Revenue Product

The extra income produced by using an additional unit of a production input, like labor or capital.

Productivity

Refers to the measure of output per unit of input.

Input Demand Curves

Graphs showing the relationship between the price of inputs and the quantity of inputs demanded by producers.

Marginal Product

The elevation in production output stemming from the addition of one unit of input.