Refer to the Following:
Following Is a Firm's Expansion Path

question 84

Multiple Choice

Refer to the following:
Following is a firm's expansion path. The price of capital is $5 per unit; the price of labor is $2 per unit.

$\begin{array}{ccc}&\text { Optimal Imput Choice }\\\text { Units of Output } & \text { Units of Capital }&\text { Units of Labor } \\10 & 6 &5 \\20 & 8 & 10 \\30 & 13 & 20 \\\end{array}$
-When output is 20 units, what is long-run average cost?

• A) $2
• B) $3.50
• C) $4
• D) $4.50
• E) none of the above

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Definitions:

Clean Price

The price of a bond excluding any accrued interest; the price that is typically quoted in the bond market.

Quoted Price

The last price at which a security or commodity was traded and is publicly available.

Par Value

The face value of a bond or stock as stated by the issuer, which has implications for interest calculations or dividends.

Yield to Maturity

Yield to Maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures, considering all payments from now until maturity, including coupon payments and the difference between the purchase price and the par value.