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What Is the Meaning of Diseconomies of Scale, and What

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What is the meaning of diseconomies of scale, and what are two ways for a firm to avoid them?


Definitions:

Return on Bonds

Return on bonds is the total income an investor receives from a bond, calculated as a percentage of the bond's purchase price, including interest payments and value appreciation.

Higher Risk

Refers to situations or investments that are more likely to result in loss or have a greater variability of returns.

Efficient Markets Hypothesis

The theory that asset prices reflect all publicly available information about the value of an asset.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

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