An Increasing-Cost Industry Is So Named Because of the Positive

question 38

Multiple Choice

An increasing-cost industry is so named because of the positive slope of which curve?

• A) Each firm's short-run average cost curve
• B) Each firm's short-run marginal cost curve
• C) Each firm's long-run average cost curve
• D) Each firm's long-run marginal cost curve
• E) The industry's long-run supply curve

Comprehend the implication of unintended consequences in economic policies.

Evaluate economic definitions and statements for their validity and applicability.

Recognize the importance of opportunity cost in economic decision-making.

Grasp the foundational aspects of economic theory and the economic way of thinking.

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Definitions:

S Corporation

A type of corporation that meets specific Internal Revenue Code requirements, allowing it to pass income directly to shareholders and avoid double taxation.

Subchapter S

A designation of corporations in the United States that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.

Federal Income Tax

Tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Controlling Shareholders

Individuals or entities that own a majority of a corporation's shares, giving them significant influence over its operations.