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The theoretical floor value for a convertible bond is its
Average Product of Labor
The output produced, on average, by one unit of labor, such as one worker or one hour of work.
Marginal Product of Labor
The additional output produced as a result of employing one more unit of labor.
Economies of Scale
The cost advantages that a business obtains due to expansion, where the average cost per unit of output decreases with increasing scale.
Diseconomies of Scale
The situation where long-run average costs start to increase as the scale of operation grows beyond a certain point, leading to increased per-unit costs.
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