A Street Vendor's Annual License Fee Was Recently Increased by the City

question 92

Multiple Choice

A street vendor's annual license fee was recently increased by the city. The street vendor's:

• A) marginal cost curve will shift out, along with her average variable cost curve.
• B) marginal cost curve will shift in, along with her average variable cost curve.
• C) marginal and average variable cost curves will not be affected.
• D) total variable cost curve will rotate upward.

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Definitions:

Disbursements

Payments made by a business in the course of its operations, often involving the outflow of cash to vendors or suppliers.

Control Procedures

Measures and policies implemented by a firm to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Petty Cash Fund

A minor sum of money maintained for the purpose of covering various minor costs through immediate transactions.

Replenished

The process of refilling or restoring inventory, supplies, or funds to their previous level or to a desired level of capacity.