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Consider the Following Limit Order Book of a Specialist

question 82

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Consider the following limit order book of a specialist.The last trade in the stock occurred at a price of $40.If a market buy order for 100 shares comes in,at what price will it be filled? Consider the following limit order book of a specialist.The last trade in the stock occurred at a price of $40.If a market buy order for 100 shares comes in,at what price will it be filled?   A)  $39.75 B)  $40.25 C)  $40.375 D)  $40.25 or less

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Definitions:

Wage Rate

refers to the amount of compensation that a worker receives in exchange for their labor, usually expressed per hour or per unit of work performed.

Maximize Profits

The process of adjusting inputs and outputs to achieve the highest possible return on investment.

Marginal Revenue Product

The additional revenue a firm generates from employing one more unit of input, such as labor or capital.

Wage Rate

The amount of compensation paid to an employee by an employer in exchange for work performed, typically expressed on an hourly, daily, or piecework basis.

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