A Long-Run Total Cost Curve

question 42

Multiple Choice

A long-run total cost curve:

• A)must be equal to zero when the level of output is zero.
• B)may be greater than or equal to zero when the level of output is zero.
• C)must be decreasing when the level of output is zero.
• D)will be equal to fixed cost, which is greater than zero, when the level of output is zero.

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Definitions:

Countercyclical Stock

Shares of companies that tend to perform well during economic downturns because they offer goods or services that remain in demand.

Portfolio Weight

The percentage composition of a particular holding or investment relative to the total value of the portfolio.

Expected Return

The forecasted amount of profit or loss an investment is projected to generate, expressed as a percentage of the total invested capital.

Portfolio Weight

The percentage composition of a particular holding in relation to the total value of the portfolio, used to assess diversification and risk.