X-Inefficiency Refers to a Situation in Which a Firm

question 311

Multiple Choice

X-inefficiency refers to a situation in which a firm

• A)is not as technologically progressive as it might be.
• B)encounters diseconomies of scale.
• C)fails to realize all existing economies of scale.
• D)fails to achieve the minimum average total costs attainable at each level of output.

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Definitions:

Yield to Maturity

The total return anticipated on a bond if the bond is held until it matures, including all interest payments and the return of principal.

Treasury Securities

Reiteration of U.S. Treasuries, but emphasizing these are safe, low-risk investment products backed by the full faith and credit of the U.S. government, including Treasury bonds, notes, and bills.

Bond Equivalent Yield

Bond yield calculated on an annual percentage rate method. Differs from effective annual yield.

Quoted Bid Price

The highest price a buyer is willing to pay for a security or commodity at a given moment.