The Average Total Cost Curve Eventually Slopes Upwards Because of the

question 33

Multiple Choice

The average total cost curve eventually slopes upwards because of the

• A) law of diminishing returns.
• B) reductions in average fixed costs.
• C) increase in capital costs.
• D) decrease in labor costs.

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Definitions:

Long-term Investments

Investments that a company intends to hold for more than one year, including stocks, bonds, real estate, and other securities.

Fair Value

An estimate of the price at which an asset would trade in a fair transaction between market participants at the measurement date.

Trading Securities Portfolio

A collection of stocks, bonds, or other securities that a company holds for the primary purpose of selling them in the short term to profit from price changes.

Year-end Adjustment

Accounting entries made at the end of an accounting period to record revenues and expenses in the correct period, also known as adjusting entries.