Which of the Following Need Be TRUE for an Asset

question 38

Multiple Choice

Which of the following need be TRUE for an asset to be considered liquid?

• A)It pays regular dividends.
• B)It can be bought and sold at an organized stock market or bourse.
• C)It is offered for sale on both primary and secondary markets.
• D)It can be easily bought and sold and the selling price is very close to the buying price at a given point in time.
• E)Buyers and sellers are anonymous.

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Definitions:

Average Costs

The total cost of production divided by the quantity produced, often used to evaluate production efficiency.

Fixed Costs

Costs that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance premiums.

Marginal Costs

Marginal costs represent the change in total production cost that arises when the quantity produced is incremented by one unit, essentially the cost of producing one additional unit of a good.

Marginal Productivity

Marginal productivity is the additional output that is produced by using one more unit of a certain input, assuming that all other inputs remain constant.