Which of the Following Statements Is True

question 57

Multiple Choice

Which of the following statements is true?

• A)Liquid assets pay high interest rates.
• B)Liquid assets bear low default risk.
• C)Holding a high proportion of funds in liquid assets will result in increased profitability.
• D)All of the listed options are correct.

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Definitions:

ATC

Another term for Average Total Cost, it represents the per unit cost of production, calculated by dividing total production cost by the quantity of goods produced.

Profit-Maximizing

A firm's objective of adjusting outputs and pricing to achieve the highest possible profit.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at each price point.

Total Cost

Represents the complete cost of production, including both fixed and variable costs, for producing a certain amount of goods or services.