Which of the Following Statement Is Incorrect

question 4

Multiple Choice

Which of the following statement is incorrect?

• A) In defined benefit funds, the final payment is defined in advance.
• B) In defined contribution (or accumulation) funds, the investment risk is borne by the members.
• C) In defined contribution (or accumulation) funds, the member's contribution is defined and the final benefit depends on the fund's investment performance.
• D) None of the above.

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Definitions:

Average Total Cost

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

Average Variable Cost

The total variable costs (costs that change with production volume) divided by the quantity of output produced.

Average Total Cost

The sum of all production costs divided by the quantity of output produced, representing the per-unit cost.

Marginal Cost

Marginal cost refers to the increase or decrease in the total cost when the quantity produced is incremented by one unit.