In an Increasing-Cost Industry,the Average Cost of Production Increases as the Total

question 19

Multiple Choice

In an increasing-cost industry,the average cost of production increases as the total output increases due to

• A) increasing input prices.
• B) price equals marginal cost.
• C) increasing in demand for outputs.
• D) all of the above

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Definitions:

Capital Budget

The planning process used by a company to determine whether its long-term investments or projects are worth pursuing.

Dividend Per Share

The sum of declared dividends for every share of common stock issued, divided by the number of outstanding shares.

Outstanding Shares

The total shares of stock that are currently owned by shareholders, including restricted shares owned by company insiders.

Profitable Projects

Initiatives or plans that are expected to generate earnings exceeding their costs.