Which of the Following Factors Would Not Shift the Cost

question 65

Multiple Choice

Which of the following factors would not shift the cost curves of an automobile company upward?

• A) a regulation requiring all automobiles be equipped with improved safety equipment
• B) an increase in the price of steel used to make automobiles
• C) an increase in the property tax on buildings and equipment used by the automobile company
• D) An employee develops a new method of installing doors on the cars that requires half as many workers as before.

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Definitions:

Capital Balance

The Capital Balance represents the amount of money that owners have invested in a business minus any withdrawals. It indicates the financial stake of the owners in the business.

Profits and Losses

Financial gains or deficits that a business experiences, typically shown in an income statement.

Invests

Invests pertains to the act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.

Capital Account

A financial statement that shows the changes in a company’s equity throughout a period, from investments, withdrawals, and net income.