Which of the Following Statements with Respect to the Figure

question 165

Multiple Choice

Which of the following statements with respect to the figure below is INCORRECT?

• A) All the possible short-run average cost curves that correspond to the different plant sizes are shown as - .
• B) If the anticipated permanent rate of output per unit time period is in panel (a), the optimal plant would correspond to .
• C) If the permanent rate of output increases to in panel (a), it will be more profitable to have a plant size corresponding to .
• D) The long-run average cost curve LAC in panel (b) is sometimes called the planning curve representing the locus (path) of points.

---

Definitions:

Statement Of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Direct Method

A way of reporting cash flows from operating activities in a cash flow statement that lists specific types of cash receipts and payments.

Cash Inflow

Money coming into a business or project from various sources including sales, investment income, or financing.

Cash Outflow

Money that flows out of a business or a financial account, typically representing expenses or investments.