Which of the Following Could Be Considered an Example of Forced

question 18

Multiple Choice

Which of the following could be considered an example of forced reinvestment if the blockage of funds was expected to be temporary?

• A) vertical reinvestment by an automobile manufacturer to buy parts suppliers and showrooms
• B) a lumber cutting company subsequently builds a paper mill with blocked funds
• C) purchase of local money market instruments and short-term loans
• D) all of the above

---

Definitions:

Quantity of Output

Refers to the total amount of goods or services produced by a firm or an economy within a specific time period.

Total Cost

The overall expenditure associated with the creation of goods or provision of services, comprising both certain and variable costs.

Marginal Cost

The additional cost incurred by producing one more unit of a product, which can vary depending on the level of production.

Average Variable Cost

The variable cost of production divided by the quantity produced, showing the cost of producing each additional unit.