If the Marginal Cost Curves of All the Firms in an Industry

question 63

Multiple Choice

If the marginal cost curves of all the firms in an industry are horizontally summed, one obtains

• A)market demand.
• B)total industry cost.
• C)nothing of value.
• D)market supply.
• E)total fixed costs.

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Definitions:

Expected Return

The weighted average of all possible returns from an investment, considering the probabilities of each outcome.

Efficient Frontier

A concept in modern portfolio theory representing the set of optimal portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is used as a measure of volatility.

Expected Return

The predicted yield or gains an investor anticipates on an investment, based on historical or statistical measures.