An Expansion Path Shows

question 318

Multiple Choice

An expansion path shows

• A)the level of sales necessary for a firm if it wants to expand.
• B)the level of long-run average cost at different scales of operation.
• C)the least-cost combination of inputs for each level of output.
• D)the returns to scale at each level of output.

---

Definitions:

Retained Earnings

The segment of net profit held back by the business rather than being shared with its proprietors in the form of dividends.

Deferred Revenue

Income that has been received by a company for goods or services not yet delivered or performed, recognized as a liability on the balance sheet.

Common Stock

Represents ownership in a corporation, granting holders voting rights and a share in the company's profits through dividends.

Authorized

Officially given permission or power to do something, often used in legal and corporate contexts.