Which of the Following Observations Is True

question 221

Multiple Choice

Which of the following observations is true?

• A)In the long run, more costs become variable.
• B)Fixed costs cannot be completely varied if the time period is sufficiently long.
• C)Fixed costs arise when some types of inputs can be bought only in big batches.
• D)Variable costs arise when inputs have a large productive capacity.

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Definitions:

Bond Ratings

A grade given to bonds that indicates their credit quality, with ratings provided by agencies like Moody's, S&P, and Fitch.

Quantitative Analysis

The process of using mathematical and statistical techniques to evaluate economic, financial, or business trends and decisions.

Special Covenants

Special Covenants are agreements inserted into financial contracts or bond issues that impose certain conditions or restrictions on the borrower, meant to protect the lender's interests.

Qualitative Analysis

The examination of non-quantitative aspects of a company or its market, such as management quality or sector conditions.