-Which of the Following Is Not True of the Firm

question 164

Multiple Choice

-Which of the following is not true of the firm in Figure 11-9?

• A)It has excess capacity.
• B)It produces at the minimum efficient scale of production.
• C)It cannot earn an economic profit.
• D)It is operating in the long run.
• E)It has no fixed costs.

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Definitions:

Separation Of Duties

A risk management strategy that divides responsibilities within an organization to reduce the risk of fraud or error.

Internal Control System

Procedures and methods to control a firm’s assets as well as monitor its operations.

Accounting Department

A division within a company or organization that is responsible for managing financial records, transactions, and reporting.

Periodic System

An inventory system that updates inventory and cost of goods sold at the end of each accounting period.