Which of the Following Is an Example of a Long-Run

question 103

Multiple Choice

Which of the following is an example of a long-run cost for a manufacturing firm?

• A) the purchase of additional raw materials
• B) hiring more employees
• C) an increase in the size of its factory
• D) paying higher tax rates
• E) increasing the size of its management team

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Definitions:

Exchange Rates

The equivalent worth of one currency in another during exchange.

Exchange Gain/Loss

The gain or loss resulting from the fluctuation in exchange rates affecting the value of transactions in foreign currencies.

Acquisition Differential

The difference between the purchase price of a company and the fair market value of its identifiable net assets.

Exchange Rates

The rate for transforming one currency into another.