Use the Figure Below to Answer the Following Question(s)

question 49

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 10-9

-Currently, the economy depicted in Figure 10-9 is in

• A) long-run equilibrium at point b
• B) short-run equilibrium at point b
• C) long-run equilibrium at point a.
• D) short-run equilibrium at point a.

---

Definitions:

Account Classification

The process of organizing accounts into categories within the financial statements, based on their nature and function.

Cost-Estimation

The process of forecasting the costs associated with a particular activity, project, or product, using historical data, statistical methods, and expert judgment.

Step-Fixed Costs

Costs that remain constant for a certain level of activity, but can change to a different amount when a certain threshold is exceeded.

Relevant Range

The scope of activity within which the assumptions about fixed and variable cost behavior hold true.