Industries in Which Firms Have High Fixed Costs and Low

question 92

Multiple Choice

Industries in which firms have high fixed costs and low marginal costs are likely to have a:

• A)large number of small firms.
• B)small number of large firms.
• C)large number of large firms.
• D)small number of small firms.

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Definitions:

Notes Receivable

Written promises for amounts to be received, typically including interest, recorded by the recipient.

Noncurrent Assets

Assets expected to provide economic benefits beyond the next year or operating cycle, excluding items for resale.

Beginning Capital Balance

The beginning capital balance is the amount of capital or equity that a company has at the start of a new accounting period.

General Ledger

A comprehensive set of accounts that records all financial transactions of a business, showing assets, liabilities, equity, revenue, and expenses.