If the Expansion of Output in an Industry Leads to Unchanged

question 149

Multiple Choice

If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be

• A) a decreasing cost industry.
• B) an increasing cost industry.
• C) a constant cost industry.
• D) an industry characterized by economies of scale.

Identify strategies for setting competitive prices and targeting the appropriate market.

Recognize the importance of the executive summary in a business plan.

Understand the role of marketing and marketing objectives in business planning.

Recognize the importance of a well-designed business plan in proactive business management.

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Definitions:

Tax Bases

The value of assets, liabilities, or transactions that is used for tax purposes, determining the taxable amount on which tax rates are applied.

Carrying Values

The amount at which an asset is recognized on the balance sheet after deducting any accumulated depreciation and impairment charges.

Deferred Tax Account

An account on a company’s balance sheet that is a provision for income taxes that have been accrued but are not yet due.

Unrealized Profits

Profits that have been earned but not yet realized through a transaction, such as an increase in value of an investment that has not been sold yet.