This Graph Shows the Cost Functions of Moe's Mushroom Gathering

question 2

Multiple Choice

This graph shows the cost functions of Moe's mushroom gathering business,which is perfectly competitive.
The curve labeled A is upward sloping because

• A) there are high fixed costs.
• B) the first bushels of mushrooms are the easiest to find,but Moe has to really hunt to find additional mushrooms.
• C) increased demand for mushrooms has increased quantity supplied.
• D) supply has shifted to the left.

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Definitions:

Budget Period

The specific time period for which a budget is prepared and used to forecast income and expenditure.

Financial Plan

A projection of a company’s financial statements into the future based on a series of assumptions about what the business and the environment will do. Part of a business plan.

Strategic Plan

A long-term business plan addressing broad issues of what a company’s management wants it to become and how it is to do business.

Business Plans

Detailed documents that outline the goals of a business, the strategy for achieving those goals, and the expected financial performance.