The Smallest Size at Which Long-Run Average Cost Is at Its

question 100

Multiple Choice

The smallest size at which long-run average cost is at its lowest level is called

• A) the minimum efficient scale.
• B) the maximum efficient scale.
• C) economies of scale.
• D) diseconomies of scale.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

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Money received by a company for goods or services yet to be delivered or performed, recognized as a liability until the service or product is delivered.

Adjusting Entry

An accounting entry made to update the financial records before financial statements are prepared, ensuring they follow the accrual basis of accounting.

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