In the Long Run

question 174

Multiple Choice

In the long run,

• A)all costs are variable costs.
• B)all costs are fixed costs.
• C)there are no variable costs.
• D)b and c

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Definitions:

Installments

Regular, often monthly, payments made towards settling a debt or purchasing a product over time.

Callable Bond

A type of bond that gives the issuer the right to repay the bond before its maturity date, usually at a specified call price.

Redeem

The act of exchanging something, such as a coupon or financial securities, for a specific value or service.

Maturity Date

is the specified date on which the final payment of a loan, bond, or other financial instrument is due to be paid.