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The Additional Incentive That the Purchaser of a Treasury Security

question 70

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The additional incentive that the purchaser of a Treasury security requires to buy a long-term security rather than a short-term security is called the


Definitions:

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's production increases.

Diminishing Returns

A principle stating that as more of a variable input is added to a fixed input, beyond some point, the additional output from the additional input will decrease.

Marginal Cost

The financial outlay required to create another unit of a good or service.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of goods produced, essentially the per unit production cost.

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