Which of the Following Statements Is Correct

question 76

Multiple Choice

Which of the following statements is correct?

• A)A firm can operate in either the short run or the long run.
• B)While a firm's plant size could be too small in the long run,its size cannot be too small in the short run.
• C)A firm can enjoy economies of scale in either the short run or the long run.
• D)While a firm can plan as if it is in the long run,it can operate only in the short run.

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Definitions:

Yield-to-Maturity

The total expected return on a bond if the bond is held until its maturity date, considering all interest payments and the repayment of principal.

After Tax

Pertains to the amount of money left over or the value of transactions after all applicable taxes have been subtracted.

Perpetuity Rate of Return

The rate at which an infinite series of cash flows, received indefinitely, is discounted to equate its present value.

Stated Dividend

The amount of dividend that a company declares to be paid out to its shareholders, usually expressed as a fixed amount per share.