Assuming No Market Imperfections,which One of the Following Will Not

question 37

Multiple Choice

Assuming no market imperfections,which one of the following will not be affected by a repurchase of shares?

• A) Assets of the firm
• B) Equity of the firm
• C) Shares outstanding
• D) Price per share

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Definitions:

Economic Costs

The total costs of undertaking an economic activity, including both explicit costs and opportunity costs.

3-D Printers

Devices that create three-dimensional objects by layering material according to digital models, used in various industries for prototyping, manufacturing, and hobbyist projects.

Factory Costs

The total expenses incurred in the manufacturing process, including labor, materials, and overhead costs.

Economies of Scale

Advantages in terms of costs that companies realize by enlarging their scale of operations, with the unit cost of production generally falling as the scale increases.