-If a Perfectly Competitive Firm Like the One Depicted in Figure

question 112

Multiple Choice

-If a perfectly competitive firm like the one depicted in Figure 9-3 produces 575 units

• A)its profit will be larger than if it produces only 475
• B)its profit will be exactly the same as if it produces 475
• C)its profit will be smaller than if it produces only 475
• D)it will be forced to shutdown
• E)its profit will be smaller than if it produced 475 but it will still make a profit.

---

Definitions:

Current Yield

The annual return of a bond, expressed as a percentage of its current market price.

6 ¾% Bond

A debt security issued with an interest rate of six and three-quarters percent, denoting the annual return to investors.

Current Yield

A financial ratio that measures the annual income (interest or dividends) from an investment as a percentage of the current price of the security.

10 ½% Bond

A bond that pays an annual interest rate of 10.5% to its holder.