If a Firm Increases All of Its Inputs by 10

question 344

Multiple Choice

If a firm increases all of its inputs by 10 percent and its output increases by 10 percent, then

• A)it is encountering diseconomies of scale.
• B)it is encountering economies of scale.
• C)it is encountering constant returns to scale.
• D)the firm's long-run ATC curve will be rising.

Identify and explain the impact of intragroup transactions on consolidated financial statements.

Apply correct consolidation entries including adjustments for unpaid management fees and accrued interest.

Describe the basis for recognizing tax effects relating to intragroup items.

Explain the rationalization behind not adjusting cash in consolidation entries.

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