For Firms That Use Crude Oil as an Input,an Increase

question 73

Multiple Choice

For firms that use crude oil as an input,an increase in the price of crude oil will cause the firm's:

• A)supply curve to shift left.
• B)quantity supplied to increase.
• C)supply curve to shift right.
• D)quantity supplied to decrease.

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Definitions:

Book Value

is the net value of a company's assets minus its liabilities, as recorded on the balance sheet, often used in assessing a company's financial health.

Market Value

The ongoing price for buying or selling an asset or service in the market.

Dilution

The reduction in existing shareholders' ownership percentage of a company as a result of the company issuing new shares.

Shareholder Value

The value delivered to shareholders due to management's ability to grow earnings, dividends, and share price.