During the Summer, Alex Runs a Lawn-Mowing Service, and Lawn-Mowing

question 93

Essay

During the summer, Alex runs a lawn-mowing service, and lawn-mowing is a perfectly competitive industry.In the short run, Alex will shut down his lawn-mowing service rather than continue mowing grass if:
A.the total revenues can't cover the total fixed costs.
B.the total revenues can't cover the total variable costs.
C.the total revenues can't cover the total cost.
D.the price exceeds the average total cost.

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Definitions:

Journal Entry

A record in accounting that notes the debit and credit transactions affecting the financial statements.

Multi-Level Entry

A complex accounting entry that affects more than two accounts, used to record transactions that cannot be captured with a simple debit and credit.

Multi-Step Entry

A journal entry that involves multiple steps to complete and may affect several accounts, typically used in complex transactions.

Statement of Owner's Equity

A financial document that shows the changes in the equity of a company's owner over a period of time.