The Long Run Is a Period of

question 151

Multiple Choice

The long run is a period of

• A) at least one year.
• B) sufficient length to allow a firm to expand output by hiring additional workers.
• C) sufficient length to allow a firm to alter its plant size and capacity and all other factors of production.
• D) sufficient length to allow a firm to transform economic losses into economic profits by hiring better workers.

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Definitions:

Outstanding Bonds

Bonds issued by an entity that are currently not redeemed and are in the hands of investors.

Semiannual Interest

Interest that is calculated and paid twice a year on investments or loans.

Par Value

The nominal or face value of a stock or bond, which is the amount stated on the certificate or instrument.

Bondholders

Individuals or institutions that hold the debt securities issued by corporations or governments, entitled to receive the bond's face value at maturity and periodic interest payments.