In the Long Run, Output Is Determined By

question 51

Multiple Choice

In the long run, output is determined by:

• A) the state of technology.
• B) the size of the capital stock.
• C) the size of the labor force.
• D) all of the above.

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Definitions:

Junk Bonds

Risky bonds issued by financially weak companies that pay high rates of interest. Also called high yield bonds.

Corporate Raiders

Investors who buy a large stake in a corporation with the goal to gain control and make changes to increase its value and their profit.

Hostile Takeovers

Hostile takeovers occur when a company acquires another company against the wishes of the target company's management and board of directors.

WACC

Weighted Average Cost of Capital, or WACC, is a financial metric that calculates the cost of capital for a business, weighting each capital segment according to its relative proportion.