Diseconomies of Scale Refers to The

question 67

Multiple Choice

Diseconomies of scale refers to the:

• A)fall in an FI's average costs of production as its output decreases
• B)fall in an FI's average costs of production as its output increases
• C)fall in an FI's average costs of production as its output remains stable
• D)increase in an FI's average costs of production as its output increases

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Definitions:

Capital Stock

Represents the original investment in a company by its owners or shareholders, indicated through the issuance of shares.

Treasury Stock

Shares that were once a part of the outstanding shares but were later repurchased by the company and held in its own treasury.

Common Stock

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Market Price

The current price at which an asset or service can be bought or sold in a public marketplace.