The Following Table Shows the Short-Run Total Cost Data for a Firm

question 190

Multiple Choice

The following table shows the short-run total cost data for a firm. All of the following are correct, except that the firm has

• A) economies of scale.
• B) fixed costs of $80.
• C) constant marginal cost.
• D) an average fixed cost of $20 at 4 units of output.

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Definitions:

Accounting Policies

Unique theories, platforms, systems, edicts, and maneuvers practiced by an organization in the creation and issuance of its financial testimonies.

Political Cost Hypothesis

A theory suggesting that larger firms are more likely to be subject to government scrutiny and regulation, thus incurring additional costs to comply with political expectations.

Political Costs

Wealth transfers imposed on the entity, resulting from political processes.

Accounting Policies

Specific convictions, understructures, modes, prescriptions, and regimens enacted by an entity for the generation and proclamation of financial analyses.