Melonie Purchased 100 Shares of Wake Corporation Stock for $6

question 36

Multiple Choice

Melonie purchased 100 shares of Wake Corporation stock for $6 per share on August 3, 2016. On December 18, 2017, Melonie sells all 100 shares for $4 per share. On January 5, 2018, Melonie purchases 50 shares of Wake stock for $5 per share. What is the basis of the 50 shares Melonie holds on January 5, 2018?

• A)- 0 -
• B)$50
• C)$250
• D)$450
• E)$650

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Definitions:

Minimum ATC

The point at which a firm's average total cost is at its lowest, typically considered in the context of the long-run average cost curve.

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a product that is homogeneous across suppliers.

Short Run

A period of time during which at least one input, like equipment or labor, is fixed while others can be varied to change output levels.

Automatic Market Adjustments

The self-regulating behavior of markets where prices and quantities adjust to changes in demand and supply conditions without external intervention.