The Input Demand Functions That Can Be Derived from Cost

question 17

Multiple Choice

The input demand functions that can be derived from cost functions are referred to as "contingent" demand functions because the functions:

• A)assume input costs are constant.
• B)express input demand as a function of output.
• C)depend on the assumption of profit maximization.
• D)assume constant returns to scale in production.

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Definitions:

Call Price

The price at which a callable bond or preferred stock can be repurchased by the issuer before its maturity date.

Coupon Bond

A type of bond that offers interest payments through periodic coupon payments to the bondholder and returns the principal at maturity.

Yields To Maturity

The total return anticipated on a bond if held until its maturity date, expressed as an annual rate.

Par Value

The nominal or face value of a bond or stock as stated by the issuer, which is often the amount paid out at maturity for bonds.