Use the Following Information for Questions

question 29

Multiple Choice

Use the following information for questions
On January 1, 2016, Newlin Co.has the following balances:
Defined benefit obligation $2,100,000
Fair value of plan assets 1,800,000
The discount rate is 10%.Other data related to the pension plan for 2016 are:
-The fair value of plan assets at December 31, 2016 is

• A)$2,430,000.
• B)$2,250,000.
• C)$2,232,000.
• D)$2,214,000.

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Definitions:

Economies of Scale

Operational scale brings about cost reductions for firms, with each unit's production cost decreasing as the operation's scale enlarges.

Economies of Scale

The cost advantage that arises with increased output of a product, as fixed costs are spread over more units of production.

Price Competition

A market situation where sellers compete primarily on the price of their goods or services, often leading to lower prices for consumers.

Oligopolistic Industries

Markets or industries dominated by a few large firms, where each firm has some market power and their decisions affect each other.