Which of the Following Statements Is False

question 63

Multiple Choice

Which of the following statements is false?

• A) The shift factors for the supply curve are: income,preferences,prices of related goods,the number of buyers,and expectations of future price.
• B) A change in (own)price changes the quantity supplied of a good.
• C) A change in demand is graphically represented by a shift in the demand curve.
• D) A change in quantity demanded is represented by a movement along a given demand curve.

Understand the relationship between price, average cost, and marginal cost in the short run supply decisions.

Recognize the short-run supply curve of a purely competitive producer and its determinants.

Calculate and understand the firm's short-run supply schedule based on price and cost data.

Understand the role and impact of the "yellow press" in late 19th and early 20th century America.

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Definitions:

Debt/Equity Ratio

The ratio that outlines the distribution of financing between debt and equity for company assets.

Cost of Equity

The rate of return that shareholders require on their investment in a company, influencing how much a company should pay to finance its equity.

Pre-Tax Cost of Debt

The rate of return that a company pays on its debt before taking into account taxes.

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay its security holders to finance its assets, weighted by the proportion of equity and debt in the company's capital structure.