Defined Benefit Plans May Include Which of the Following Features

question 35

Multiple Choice

Defined benefit plans may include which of the following features?

• A) Fixed benefit plans in which all employees receive the same benefits
• B) Flat benefit plans in which the benefit is a percentage of salary
• C) Unit benefit plans which depend on income and length of service
• D) A and B
• E) A, B, and C

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Definitions:

Diseconomies of Scale

The phenomenon when a company or business grows so large that the costs per unit increase, leading to inefficiency.

Long-Run

A time period in economics where all inputs are variable, allowing firms to adjust all factors of production.

Average Cost Curve

A graph showing the cost per unit of output produced, calculated by dividing total costs by the quantity of output.

U‐Shaped

The U-shaped concept typically refers to a relationship where variables initially decrease, reach a lowest point, and then increase, forming a graph that resembles a U shape.