Which of the Following Would Be a Reason That Industry

question 37

Multiple Choice

Which of the following would be a reason that industry and client data were not directly comparable?

• A)Broad industry.
• B)Use of different accounting principles.
• C)Neither of the above.
• D)Both A & B are correct.

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Definitions:

Average Variable Cost Curve

The Average Variable Cost Curve graphically represents how a firm's variable costs (costs that change with the level of output) per unit of output change as the firm alters its level of production.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one more unit of a good varies as production volume changes.

Diminishing Returns

A principle stating that as additional units of a variable input are added to a fixed input, the marginal product of the variable input eventually decreases.