What Term Is Used for the Extent to Which the Returns

question 14

Multiple Choice

What term is used for the extent to which the returns on two investments move together?

• A) Covariance
• B) Correlativity
• C) Correspondence
• D) Coefficient

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Definitions:

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a product or service.

Average Variable Cost

The total variable expenses divided by the number of units produced, representing the variable cost per unit.

Average Total Cost

The total cost of production divided by the number of goods produced, representing the average cost per unit of output.