If the 7s of 2005 Are Offered at 102:23,then the Price

question 75

Multiple Choice

If the 7s of 2005 are offered at 102:23,then the price of a $1,000 bond would be:

• A) $1,020.23.
• B) $1,022.30.
• C) $1,025.00.
• D) $1,027.19.

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Definitions:

Long-run Total Costs

The total costs incurred by a firm when all inputs are variable and can be adjusted.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Long-run Average Total Cost

The average cost per unit of output when all inputs, including capital, are variable, analyzed over a period when all factors of production can be adjusted.

Economies of Scale

The cost advantage that arises with increased output of a product, resulting in a decrease in the per-unit cost as the scale of production is enlarged.