Assume the Following Total Cost Schedule for a Perfectly Competitive

question 26

Multiple Choice

Assume the following total cost schedule for a perfectly competitive firm. $$\begin{array}{l}\begin{array} { | l | l | l | } \hline \text { Output } & \text { TVC } & \text { TFC } \\\hline 0 & 0 & 100 \\\hline 1 & 40 & 100 \\\hline 2 & 70 & 100 \\\hline 3 & 120 & 100 \\\hline 4 & 180 & 100 \\\hline 5 & 250 & 100 \\\hline 6 & 330 & 100 \\\hline\end{array}\\\text { TABLE 9- } 2\end{array}$$
-Refer to Table 9- 2. If the firm is producing at an output level of 2 units, the ATC is _ and the AVC is _ .

• A) $85; $35
• B) $100; $70
• C) $70; $35
• D) $50; $50
• E) $140; $40

Recognize the implications of separate versus consolidated income tax filings.

Calculate goodwill in business acquisitions.

Understand the treatment of goodwill and net operating losses in consolidation.

Understand the principles of accrual-based net income calculation in a corporate setting.

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Definitions:

Wheat

A type of cereal grain that is grown worldwide and is a staple food in many regions, used to make products like bread, pasta, and flour.

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Objects designed for play, typically used by children, that can range from simple handmade items to complex electronic devices.

Excise Tax

A tax on sales of a good or service.

Producers

Individuals or businesses that create and supply goods or services in the economy.