Alan Bought 20 Shares of Labatt's Stock for Himself to Celebrate

question 144

Multiple Choice

Alan bought 20 shares of Labatt's stock for himself to celebrate his favorite foreign beer company in 2000. Alan's purchase is an example of:

• A) foreign direct investment.
• B) foreign portfolio investment.
• C) importing.
• D) exporting.

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Definitions:

Total Cost

The sum of fixed and variable costs incurred by a firm in the production of goods or services.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Average Total Cost

represents the per-unit total cost of production, calculated by dividing the total cost by the quantity of output produced.

Variable Cost

Costs that change in proportion to the level of production or sales volume.