Use the Figure Below to Answer the Following Questions

question 142

Multiple Choice

Use the figure below to answer the following questions.

Figure 11.4.2
-Refer to Figure 11.4.2, which illustrates the short-run average total cost curves for four different plant sizes. Which plant has the lowest average total cost for an output rate of 5 sweaters a day?

• A)Plant A
• B)Plant B
• C)Plant C
• D)Plant D
• E)none of the above

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Definitions:

Net Income

The consummate earnings of a company following the subtraction of all operational costs and tax liabilities from its gross revenue.

Dividends

Payments made by a corporation to its shareholders, usually from profits.

Equity Method

An accounting technique used by companies to assess the profits earned by their investments in other companies, where the investment is recorded initially at cost and adjusted thereafter for the post-acquisition change in the investor's share of the investee's net assets.

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.