Which of the Following Is a Feature of Defined Contribution

question 19

Multiple Choice

Which of the following is a feature of defined contribution plans?

• A)They are faster to vest than defined benefit plans.
• B)They are characterized by high contribution rates.
• C)They are less portable than defined benefit plans.
• D)They are fully funded by employers.

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Definitions:

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for its product or service, unlike price discrimination strategies where different prices are set for different markets or consumers.

Economic Profit

The profit a firm makes after deducting both explicit and implicit costs, reflecting the total opportunity costs of all resources involved.

Profit-Maximizing

A method or strategy that aims to achieve the highest possible profit from business operations.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced, indicating the cost per unit of output.