Junk Bonds [Blank]

question 20

Multiple Choice

Junk bonds [blank].

• A)pay little or no interest
• B)are commonly used to finance municipal waste disposal facilities
• C)are issued by the U S Treasury department
• D)have yields that are considerably higher than those of the highest-rated bonds

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Definitions:

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the quantity of output produced, a measure of per unit cost.

Marginal Cost

The cost of producing one additional unit of a good or service, which can vary depending on the level of production.

Average Variable Cost

The total variable cost divided by the quantity of output, representing the variable cost per unit of output.

Marginal Product

The additional output resulting from using one more unit of a particular input, holding all other inputs constant.