Which of the Following Is True Regarding a Long-Run Industry

question 159

Multiple Choice

Which of the following is true regarding a long-run industry supply curve that is upward sloping?

• A) Average costs of production are unchanged when industry output increases.
• B) Average costs of production increase when industry output is increased.
• C) Average cost of production decrease when industry output is increased.
• D) All of the above could be true depending on the market situation.

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Definitions:

GAAS Auditing

Standards that guide the conduct of audits on the financial statements of companies, known as Generally Accepted Auditing Standards.

Adverse Opinion

An auditor’s opinion that states that deviations from generally accepted accounting principles are so serious that an unqualified opinion is impossible and a qualified opinion is not justified.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction.

FASB

Stands for Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards for companies and non-profit organizations in the United States.