In 2015 Rita Is Divorced with One Child

question 55

Multiple Choice

In 2015 Rita is divorced with one child.She has AGI of $19,500 resulting in a federal income tax liability of $225 and an earned income credit of $3,137.She has had $550 of federal income taxes withheld from her pay.Rita will receive a federal income refund of

• A)$550.
• B)$325.
• C)$3,137.
• D)$3,462.

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Definitions:

Average Total Cost

The total cost divided by the quantity of output produced; it includes both fixed and variable costs.

Long-Run Equilibrium

A state in which all firms in a perfectly competitive market earn zero economic profits, indicating no incentive for entry or exit.

Monopolistically Competitive

Describes a market structure where many firms offer products that are similar but not perfect substitutes, leading to competition based on product differentiation.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand, achieving a market balance.