Total Fixed Cost (TFC)

question 264

Multiple Choice

Total fixed cost (TFC)

• A)falls as the firm expands output from zero, but eventually rises.
• B)falls continuously as total output expands.
• C)varies directly with total output.
• D)does not change as total output increases or decreases.

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Definitions:

Risk-Free Return

The return on investment with no risk of financial loss, often represented by the yield on government securities.

Sharpe's Measure

A ratio used to evaluate the risk-adjusted return of an investment, comparing its excess return over the risk-free rate to its standard deviation of returns.

Risk-Free Return

The theoretical return attributed to an investment with zero risk, often associated with the return on government bonds.

Monarch Stock Fund

A hypothetical or specific mutual fund focusing on stocks, possibly structured around companies with substantial market influence or leadership.