By How Much Did the Price of a $1,000 Par-Value

question 109

Multiple Choice

By how much did the price of a $1,000 par-value bond decrease if The Wall Street Journal shows a change of -12 from the previous day?

• A) $0.88
• B) $1.20
• C) $3.75
• D) $12.00

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Definitions:

Economies of Scale

The financial advantages achieved by companies through their operational size, with unit costs usually dropping as the scale of production increases.

Average-Fixed-Cost Curve

A graphical representation showing how the fixed cost per unit changes with changes in the volume of production.

AVC Curve

The Average Variable Cost (AVC) curve represents how the per-unit variable cost of production changes as the quantity of output changes.

ATC Curve

The average total cost curve, which plots the per-unit total cost of producing goods at different levels of output.