A New Home Developer Who Is Including Appliances with the Sale

question 37

Multiple Choice

A new home developer who is including appliances with the sale of each house most probably would assist the buyer in obtaining a

• A) blanket mortgage.
• B) shared appreciation mortgage.
• C) equity sharing mortgage.
• D) package mortgage.

---

Definitions:

Short Run

A period in which at least one input in the production process is fixed, limiting the ability of the firm to adjust production levels.

Variable Costs

Outlays that shift in tandem with the quantity of goods produced.

Long Run

A period sufficient for all inputs and production processes to be adjusted, including changing the scale of production facilities.

Average Fixed Costs

Average Fixed Costs are the total fixed costs of production divided by the quantity of output produced.