Table 282 In Table 28

question 110

Multiple Choice

Table 28.2 $$\begin{array} { | l | r | r | r | r | } \hline &{ \text { Firm A } } & { \text { Firm B } } & { \text { Firm C } } & { \text { Firm D } } \\\hline \text { External Costs } & \$0& \$& 175 & \$\\\hline \text { Private Costs } & 400 & 250 & 175 & 200 \\\hline \text { Social Costs } & & 350 & \$ & 250 \\\hline\end{array}$$
In Table 28.2,which firm has the greatest difference between social and private costs?

• A)Firm A.
• B)Firm B.
• C)Firm C.
• D)Firm D.

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Definitions:

Annual Coupon

The annual interest payment made by a bond issuer to the bondholders, usually fixed at issuance.

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a period of time, usually expressed as a percentage.

Annual Coupon Rate

An alternative term for Coupon Rate, representing the yearly interest payment made by bonds relative to their face value.

Par Value

The face value of a bond or stock as stated by the issuing company, not necessarily its market value.