In Late November of 2010, a Share of Microsoft Sold

question 95

Multiple Choice

In late November of 2010, a share of Microsoft sold for about $25 and a share of McDonald's sold for about $80. In late June of 2011, Microsoft shares were about $26 and McDonald's shares were about $85. If these two companies were the only choices available, what is your economic profit if you invest $400 in Microsoft?

• A) -$25
• B) -$9
• C) $9
• D) $16

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Definitions:

Coercive Power

The ability of a person or group to enforce their will or obtain compliance from others through threats, sanctions, or other forms of pressure.

Countervailing Power

The concept in economics and political science where power is used to balance or counteract another power, preventing dominance or excess in markets or governance.

Dominant Person

An individual who exhibits superiority or control in a relationship or group setting, often influencing outcomes or decisions.

Primary Source

A primary source is an original document or firsthand account that has direct information about a topic, used in research and historical analysis.