A Balanced Project Portfolio May Be Interpreted to Mean That

question 26

True/False

A balanced project portfolio may be interpreted to mean that a single portfolio contains both high and low risk,low growth and high growth,and risky and safe projects.

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Definitions:

Total Cost

The sum of fixed and variable costs incurred by a business in producing a certain level of output.

Short-Run Average Total Cost

Short-run average total cost is the total cost of production (fixed and variable costs) divided by the total output produced, calculated when at least one factor of production is fixed.

Economies

The large set of interrelated production and consumption activities that aid in determining how scarce resources are allocated.

Diseconomies

Circumstances where increasing the scale of production leads to higher per-unit costs, often due to inefficiencies gained at larger scales.