The Figure Given Below Shows the Demand [D and D']

question 108

Multiple Choice

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-The face value of a bond is:

• A)the amount of the coupon that is paid at equal intervals.
• B)the amount repaid to the lender on maturity.
• C)the percentage of company profits that is paid to the borrower.
• D)equivalent to the capital gain.
• E)equivalent to economic profit.

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as production increases.

Average Total Cost (ATC)

The total cost of production (fixed and variable costs) divided by the total quantity of output produced.

Marginal Cost (MC)

Marginal cost is the increase in total cost that arises from producing one additional unit of a product or service.

Marginal Revenue (MR)

The enhanced earnings from distributing an additional unit of a good or service.