Investment Returns

question 305

Multiple Choice

Investment returns

• A) are always positive.
• B) are only received when an asset is sold.
• C) are only received when there is a stream of multiple payments generated by the asset.
• D) can be received either through the sale of an asset or as a stream of payments.

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Definitions:

Economies of Scale

Refers to the cost advantage that arises with increased output of a product, leading to a reduction in the per-unit cost.

Production Process

A sequence of steps or operations involved in the manufacture of goods or the delivery of services.

Minimum Efficient Scale

The smallest scale of production a firm can achieve while still taking full advantage of economies of scale.

Production Expertise

Specialized knowledge or skills in the process of creating goods or services.