The Price at Which Shares Are Bought and Sold on the Open

question 19

Multiple Choice

The price at which shares are bought and sold on the open market is called:

• A)book value.
• B)dividend value.
• C)market value.
• D)redemption value.

---

Definitions:

Short-Run Equilibrium

A condition in a market or economy where all forces are balanced, but only temporarily; prices and output may change until a long-run equilibrium is achieved.

Long-Run Equilibrium

A condition where an economy or market achieves a stable state after adjustments, where supply equals demand over an extended period.

Pure Competition

A market structure characterized by a large number of sellers and buyers, free entry and exit, and a product that is homogeneous across producers.

P = MC

An economic condition where price equals marginal cost, indicating optimal resource allocation in perfectly competitive markets.