If the Output of a Firm Is Increased by One

question 85

Multiple Choice

If the output of a firm is increased by one unit, the revenue addition is called

• A)total revenue.
• B)average revenue.
• C)marginal revenue.
• D)economic profit.

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Definitions:

Systematic Risk

Systematic risk refers to the overall risk affecting the entire market or market segment, making it unavoidable through diversification.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio.

Idiosyncratic Risk

The risk associated with an individual asset, which can be mitigated through diversification.

Systematic Risk

Systematic risk refers to the inherent risk that affects the entire market or a major market segment and cannot easily be mitigated through diversification.