Use the Table for the Question(s)below

question 13

Multiple Choice

Use the table for the question(s) below.
-If the value of security "C" is $180,then what must be the value of security "A"?

• A)$80
• B)$90
• C)$100
• D)Unable to determine without the risk-free rate.

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Definitions:

Economic Profits

The excess of total revenue over total cost, including both explicit and implicit costs, reflecting the true profitability of a business.

Marginal-cost Pricing

A pricing strategy where the price of a product is set equal to the additional cost of producing one extra unit of output.

Productive Efficiency

A state where an economy or firm produces goods or services at the lowest possible cost, using resources in the best possible manner without waste.

Managerial Incentives

Incentives designed to motivate managers to make decisions that align with the owner's or shareholders' interests.