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Figure: Long-Run and Short-Run Average Cost Curves
-(Figure: Long-Run and Short-Run Average Cost Curves) Look at the figure Long-Run and Short-Run Average Cost Curves. If a firm is producing at point C on the ATC2 but anticipates increasing output to 225,000 units in the long run, the firm will build a _____ plant and have _____ of scale.
Short-Term Debt
Borrowings that are due to be paid back within a short period, typically less than one year.
Long-Term Equities
Investment securities that represent ownership in a company or corporation and are held for a period longer than one year.
Maturity Matching
A financial strategy that entails matching the duration of assets and liabilities to minimize risk associated with cash flow mismatches.
Project Duration
The total time required to complete a project from start to finish.
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