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How Can You Reconcile the Fact That Whether an Investor

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Essay

How can you reconcile the fact that whether an investor favours dividends or capital gains, the investor should accept the dividend discount model as a determination of share value?


Definitions:

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per-unit cost as output increases.

Diseconomies Of Scale

The situation when a firm's costs per unit increase as it produces more output, opposite of economies of scale.

ATC Curve

A graphical representation of the average total costs of production at different levels of output in economics.

AVC Curve

The average variable cost curve, which shows a firm's average variable costs of production at different levels of output.

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