Which of the Following Always Decreases When Output Increases

question 21

Multiple Choice

Which of the following always decreases when output increases?

• A) total fixed cost
• B) marginal cost
• C) average variable cost
• D) average fixed cost
• E) total cost

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Definitions:

Beta

A parameter that measures the degree of variability or systematic risk of a security or a portfolio in relation to the market at large.

S&P 500 Futures

Financial contracts speculating on the future value of the S&P 500 Index.

Risk-Free Rate

The estimated yield from an investment that carries no risk, often illustrated by government bond yields.

High Water Mark

The previous value of a portfolio that must be reattained before a hedge fund can charge incentive fees.