Dollar Cost Averaging Is

question 31

Multiple Choice

Dollar cost averaging is

• A)periodically buying a round lot of stock
• B)periodically investing a specified dollar amount in a stock
• C)a means to increase the average cost basis
• D)a means to insure a positive return

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Definitions:

Productive Efficiency

Refers to a situation where an economy or entity cannot produce more of one good without affecting the production of another good, operating at the lowest possible cost per unit.

Allocative Efficiency

A state of resource allocation where goods and services are distributed according to consumer preferences, maximizing overall social welfare.

Economically Inefficient

A condition where resources are not utilized in the best possible manner, leading to potential waste or losses in terms of welfare or output.

Average Total Cost

The total cost of production divided by the total quantity produced, representing the per-unit cost of production.