If the Market Price Is $25 in a Perfectly Competitive

question 165

Multiple Choice

If the market price is $25 in a perfectly competitive market, the marginal revenue from selling the fifth unit is

• A)$5.
• B)$12.50.
• C)$25.
• D)$125.

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Definitions:

Capital Gains Yield

The percentage change in the price of an investment over a specified period, not accounting for dividends or other earnings.

Yield to Call

The return an investor would receive if a callable bond is held until the issuer exercises the call option.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Coupon Rate

The interest rate stipulated on a bond or fixed-income security that the issuer pays to the holders periodically until maturity.