Melissa Has Been Assigned to Work on the Development of a Budget

question 96

Multiple Choice

Melissa has been assigned to work on the development of a budget that plans future investments in major assets such as buildings and heavy machinery. Melissa is working on a(n)

• A) cash budget.
• B) capital budget.
• C) revenue budget.
• D) operating budget.
• E) expense budget.

---

Definitions:

Long-run Equilibrium

A state in which all factors of production are optimally distributed meeting the demands of consumers; also, a point where economic forces such as supply and demand are balanced.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit.

Economic Efficiency

A situation where resources are allocated in a way that maximizes the net benefit to society.

Market Demand Curve

A graphical representation that shows the total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.