A Mutual Fund That Invests in the Common Stocks of Companies

question 28

Multiple Choice

A mutual fund that invests in the common stocks of companies in the same industry is called a(n) ____________ fund.

• A)specialty
• B)income
• C)growth-income
• D)small-cap
• E)money market

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Definitions:

Average Total Costs

A rephrasing: The sum of all production costs divided by the quantity of goods produced, indicating the average cost for each unit.

Average Variable Costs

This represents the total variable costs (costs that vary with the production level) divided by the quantity of output produced.

Total Costs

The sum of all costs incurred by a business in producing a particular quantity of a good or service, including both fixed and variable costs.

Economic Cost

The total cost of choosing one action over another, including both explicit costs and opportunity costs.