Use the Following Information to Answer the Question(s)below

question 75

Multiple Choice

Use the following information to answer the question(s) below.
Suppose all possible investment opportunities in the world are limited to the four stocks listed in the table below:
-Suppose that you are holding a market portfolio and you have invested $9000 in Rearden Metal.The amount that you have invested in Nielson Motors is closest to:

• A)$6000.
• B)$7715.
• C)$9000.
• D)$10,500.

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Definitions:

Increasing Returns

A situation in production where the output increases by a proportion greater than the increase in inputs, often leading to economies of scale.

Input Prices

The prices of the raw materials, components, or services that are used to produce a final product or service.

Marginal Product

The additional output resulting from a one-unit increase in the quantity of a variable input, while keeping other inputs constant.

Returns to Scale

The rate at which output increases as a result of proportionately increasing all inputs in the production process.