Checking Deposits Generally Have a Lower Return on Investment Than

question 21

True/False

Checking deposits generally have a lower return on investment than do certificates of deposit because checking deposits are less risky.

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, indicating the average cost per unit.

Average Revenue

The revenue generated per unit of output sold, calculated by dividing total revenue by the number of units sold.

Marginal Revenue

The additional income earned from selling one more unit of a product or service.

Marginal Revenue

The additional income gained from selling one more unit of a good or service.