Which of the Following Affects Both the Marginal and Average

question 78

Multiple Choice

Which of the following affects both the marginal and average total cost curves of a firm in the short run?

• A)A change in profit taxes.
• B)A change in payroll taxes.
• C)A change in property taxes.
• D)A change in consumer income.

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Definitions:

Stock Split

A corporate action that increases the number of a company's outstanding shares by issuing more shares to current shareholders, thus reducing the price of each share.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Legal Entity

An organization that has legal rights and obligations, including the ability to enter into contracts and own property.

Stockholders' Equity

The residual interest in the assets of a corporation after subtracting liabilities, representing the ownership interest of shareholders.