If Beginning Capital Was $170,000, Ending Capital Is $93,000, and the Owner's

question 79

Multiple Choice

If beginning capital was $170,000, ending capital is $93,000, and the owner's withdrawals were $19,000, the amount of net income or net loss was:

• A) net income of $77,000.
• B) net income of $58,000.
• C) net loss of $58,000.
• D) net loss of $77,000.

---

Definitions:

Cost-output Elasticity

Cost-output elasticity measures the responsiveness of the cost of production to changes in the quantity of output produced, indicating the scale economies in production.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Marginal Cost

The expenditure required to produce an additional unit of a product.

Short-run Cost Function

An economic formula that describes how production costs change in the short term with varying levels of output, assuming some inputs are fixed.