The Positive Results Associated with Increasing International Diversification Have Been

question 88

Multiple Choice

The positive results associated with increasing international diversification have been shown to:

• A) continue as the level of international diversification increases.
• B) level off and become negative as diversification increases past some point.
• C) become negative quickly.
• D) be centered in only one or two industries.

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Definitions:

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.

Average Total Cost

The total cost of production divided by the number of units produced, indicating the average cost per unit.

Average Revenue

The revenue generated per unit of output sold, calculated by dividing total revenue by the number of units sold.

Marginal Revenue

The additional income earned from selling one more unit of a product or service.