Critical Thinking Questions Case 8-2

question 54

Multiple Choice

Critical Thinking Questions
Case 8-2
Another colleague shares the following code with you:
Dim strEmployees(50) As String
' Later in the code
ReDim strEmployees(65) .
-Which of the following is NOT true based on what you see in your colleague's code?

• A) The strEmployees array originally is sized to hold 51 values.
• B) The strEmployees array is reinitialized to hold 66 values.
• C) If the array had been redimensioned to a smaller size, your colleague would not lose the items between the original upper-bound array size and the new smaller upper-bound array size.
• D) When the array is redimensioned, all the data contained in the array is lost.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, remaining constant regardless of the business activity.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output, representing the variable cost per unit of output.

MC = MR

An economic principle stating that to maximize profits, firms should produce up to the point where marginal cost equals marginal revenue.

MC = MR

The principle that profit maximization occurs when a firm's marginal cost (MC) equals its marginal revenue (MR).