If the Assets in Which Funds Are Invested Have a Rate

question 97

True/False

If the assets in which funds are invested have a rate of return lower than the fixed rate of return paid to the supplier of the funds, then financial leverage is positive.

---

Definitions:

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit varies as production increases.

Average Cost Curve

A graphical representation showing how the cost per unit of producing goods changes with changes in the volume of goods produced, highlighting economies and diseconomies of scale.

Market Level Supply

The total quantity of a good or service that producers are willing to sell across the entire market at a given price level.

Marginal Costs

The swelling of total charges resulting from generating an extra unit of a good or service.