Use the Following to Answer Questions -(Table: Cherry Farm)Use Table: Cherry Farm

question 260

Multiple Choice

Use the following to answer questions : $$\begin{array}{l}\text { Table: Cherry Farm }\\\begin{array} { c c } \hline \begin{array} { l } \text { Quantity of } \\\text { cherries } \\\text { (in pounds) }\end{array} & \text { Total Cost } \\\hline 0 & \$ 2 \\1 & 7 \\2 & 11 \\3 & 13 \\4 & 16 \\5 & 21 \\6 & 28 \\7 & 38 \\\hline\end{array}\end{array}$$
-(Table: Cherry Farm) Use Table: Cherry Farm.Suppose all farms have identical cost curves,as shown in the table.How much will the industry produce in long-run equilibrium if there are 100 farms in the industry in the long run?

• A) 600 kilograms
• B) 500 kilograms
• C) 400 kilograms
• D) 0 kilogram

---

Definitions:

Bond Ratings

A system used to assess the credit quality and risk level of bonds, typically assigned by rating agencies.

Sinking Fund Provisions

A requirement for a debtor to set aside funds at regular intervals to repay a bond or loan before its maturity in order to ensure the safety of the investment for creditors.

Bond Issue

The process by which a government or corporation raises funds by issuing bonds to investors, who lend them money in exchange for periodic interest payments and the return of principal at maturity.

Call Provision

A feature of a bond or other fixed-income security that allows the issuer to repurchase and retire the debt before its maturity date.