Amalgamated Monkey Nuts Inc

question 55

Multiple Choice

Amalgamated Monkey Nuts Inc. has a range of returns between 1 percent and 5 percent while Moose Pasture Minerals Ltd. has a range of returns between 4 percent and 9 percent. This means

• A)Amalgamated Monkey Nuts Inc. is a less risky stock.
• B)Moose Pasture Minerals Ltd. is a less risky stock.
• C)Amalgamated Monkey Nuts Inc. is a more risky stock.
• D)Moose Pasture Minerals Ltd. should be avoided by all investors.

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Definitions:

Economic Profit

Economic profit is the difference between a firm's total revenue and its total costs, including both explicit and implicit costs, thereby measuring efficiency beyond accounting profit.

Long Run

In economics, the time period in which all factors of production and costs can be fully adjusted, contrasting with the short run where some costs are fixed.

Marginal Revenue

The additional income received from selling one more unit of a good or service.

Marginal Cost

The elevation in aggregate cost associated with creating an extra unit of a good or service.