If Melissa Owns a Software Company That Incurs No Fixed

question 180

Multiple Choice

If Melissa owns a software company that incurs no fixed costs,then

• A) her total cost equals her total variable cost.
• B) she will earn an economic profit.
• C) her total variable cost is less than her total cost.
• D) her total cost equals zero.
• E) her marginal cost must equal zero.

---

Definitions:

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to achieve those goals.

Operating Synergy

The increased efficiency or added value that results when two companies combine their operations.

Economies of Scales

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Restructuring

The process of restructuring a company's legal, ownership, operational, or other configurations to enhance its profitability or to better suit its current requirements.