The Special Cost Structure That Is Necessary for a Firm

question 120

Multiple Choice

The special cost structure that is necessary for a firm to adopt a peak-load pricing policy is?

• A)Economies of scale.
• B)Economies of scope.
• C)Constant marginal cost.
• D)Limited capacity.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenue.

Owners' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or owners.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Inventory Turnover Rate

A measure of how many times a company's inventory is sold and replaced over a specified period, indicating the efficiency of inventory management.