Short-Run Average Cost Is

question 83

Multiple Choice

Short-run average cost is

• A)always greater than long-run average cost.
• B)always less than long-run average cost.
• C)less than short-run marginal cost when short-run marginal cost is decreasing.
• D)both a and c
• E)none of the above

---

Definitions:

Adjusting Journal Entries

Adjusting journal entries are made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Debit Portion

The segment of a financial transaction recorded on the left side of an account, indicating an increase in assets or expenses or a decrease in liabilities or equity.

Expense Account

An account that tracks the costs incurred by a company in its operational activities, such as rent, utilities, and salaries.

Credit Portion

The segment of a financial transaction that records a decrease in assets or an increase in liabilities on a balance sheet.