The long run:
a. is a period long enough for every input except plant size to be varied.
b. is a period in which there are no fixed costs.
c. is typically a period of two years.
d. is all of the above.
Question 2
If the par value of a bond is 200, and the bid price of the bond is 90, it implies that:
a. the bond is sold at 110.
b. the bond was bought at 110.
c. the bond is trading at a discount of 10 percent of its par value.
d. the bond is trading at 45 percent of its par value.
e. the bond is trading at a premium of 15 percent.
