In the Short Run, Total Output in an Industry

question 64

Multiple Choice

In the short run, total output in an industry

• A)is fixed at a specific level.
• B)can vary as the result of using a fixed amount of plant and equipment more or less intensively.
• C)may be altered by varying the size of plant and equipment which now exist in the industry.
• D)can vary as the result of new firms entering or leaving the industry.

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Definitions:

Accounts Payable Subsidiary Ledger

The subsidiary ledger containing the individual accounts with creditors (suppliers).

Cash Payments Journal

A business ledger that documents every cash expenditure or payment conducted by a company.

Purchases Journal

A purchases journal is a special journal used in accounting to record all purchases of merchandise, supplies, or other assets on credit.

Horizontal Analysis

Financial analysis that compares an item in a current statement with the same item in prior statements.