In the Short Run,the Cost of ________ Is Variable,whereas the Cost

question 109

Multiple Choice

In the short run,the cost of ________ is variable,whereas the cost of ________ is fixed.

• A) capital; labor
• B) electricity; wages
• C) capital; raw materials
• D) labor; capital
• E) raw materials; labor

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Definitions:

Cumulative Preferred Stock

A type of preferred stock that entitles the shareholder to receive dividends that were missed in the past before any dividends are paid to common stock shareholders.

Capital Stock

The total amount of shares that a corporation is authorized to issue as stated in its articles of incorporation.

Dividend

A portion of a company's earnings distributed to its shareholders.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid, and must be paid out before dividends to common stockholders.