Use the Information for the Question(s)below

question 49

Multiple Choice

Use the information for the question(s) below.
Suppose you invest $20 000 by purchasing 400 shares of BHP Billiton (BHP) at $13 per share, 500 shares of ANZ Bank (ANZ) at $20 per share, and 200 shares of Flight Centre (FLT) at $24 per share.
-Suppose over the next year BHP has a return of 12.5%, ANZ has a return of 20%, and FLT has a return of -10%. The value of your portfolio over the year is:

• A)$21 500.
• B)$20 000.
• C)$22 170.
• D)$21 000.

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, indicating the cost per unit of output.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, an essential concept for understanding optimal production levels and pricing strategies.

Monopolistically Competitive

Pertaining to a market structure where many firms sell products that are differentiated from one another but can act as substitutes, thereby creating competition.

Average Total Cost

The aggregate expense of manufacturing (sum of constant and fluctuating costs) spread over the entire volume of goods produced.