Which of the Following Types of Firms Are Least Likely

question 116

Multiple Choice

Which of the following types of firms are least likely to have their MC,AVC,and ATC curves affected by fluctuations in gasoline prices?

• A) Firms like UPS that use a fleet of gasoline-powered vehicles.
• B) Taxi cab and limousine companies.
• C) Companies that operate bus tours to popular vacation destinations.
• D) Firms like iTunes that distribute their products over the internet.

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Definitions:

Lender of Last Resort

A role usually performed by a central bank, providing funds to financial institutions facing financial difficulty to prevent systemic collapse.

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing American monetary policy and financial system regulation.

Bank Failures

Occurrences when a bank is unable to meet its obligations to depositors or creditors and ceases operations, often resulting in regulators seizing the institution.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by massive unemployment and widespread poverty.