High Color Detergent Is Issuing New Shares of Stock Which

question 52

Multiple Choice

High Color Detergent is issuing new shares of stock which will trade on NASDAQ.If Sue purchases 300 of these shares,the trade will occur in which one of the following markets?

• A)primary
• B)secondary
• C)third
• D)fourth
• E)over-the-counter

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Definitions:

Excess Capacity

The failure to produce enough to minimize average total cost; characteristic of monopolistically competitive firms.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity produced.

Marginal Cost

This represents the extra expense of manufacturing or producing an additional item, highlighting the concept of decreasing efficiency with increased production volume.

Marginal Revenue

The additional income earned by selling one more unit of a product or service.