Eddie Purchased an Autographed Kobe Bryant Basketball When He Was

question 203

Multiple Choice

Eddie purchased an autographed Kobe Bryant basketball when he was 17 years old for a total cost of $200 and then sold the basketball 4 years later for $700. Due to these transactions

• A) Eddie earned a capital gain of $500.
• B) Eddie earned a capital gain of $700.
• C) Eddie earned a dividend of $500.
• D) Eddie earned a dividend of $900.

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Definitions:

Marginal Revenue

The additional income earned by selling one more unit of a good or service.

Marginal Costs

The change in total production cost that arises when the quantity produced is incremented by one unit.

Investment

The allocation of resources, usually money, in order to gain profitable returns as interest, income, or appreciation in value.

Workers

Individuals who perform tasks or jobs for pay, ranging from manual labor to professional occupations.