Which of the Following Is the Best Example of a Decreasing-Cost

question 106

Multiple Choice

Which of the following is the best example of a decreasing-cost industry?

• A) the health care industry
• B) the personal computer industry
• C) the college-education industry
• D) the oil industry

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Definitions:

Option

A financial derivative that provides the buyer the right, but not the obligation, to buy or sell an asset at an agreed-upon price within a certain period.

Lower Bound

The minimum level that an economic or financial variable can achieve, often used in the context of interest rates.

Fixed Price

A fixed price is a set cost for goods or services that does not change in response to market fluctuations or differing quantities purchased.

Common Stock

Type of equity security that represents ownership in a corporation, with rights to vote on corporate matters and share in dividends.