In 2016, T Corporation Changed Its Tax Year from Ending

question 21

True/False

In 2016, T Corporation changed its tax year from ending each April 30th to ending each December 31st. The corporation earned $60,000 during the period May 1, 2016 through December 31, 2016. The annualized income for the short year is $90,000.

Understand the impact of changes in production capacity on cost curves and firm's costs.

Apply the concept of user cost of capital and its components in the analysis of capital costs.

Analyze how the law of diminishing returns affects costs and the production function in the short run.

Calculate and interpret cost functions, including total cost, average cost, and marginal cost from given data or equations.

---

Definitions:

Negative Reinforcement

A concept in behavioral psychology where the removal of an unfavorable outcome or stimulus strengthens the behavior that led to its removal.

Positive Reinforcement

A strategy in behavior modification that involves the addition of a rewarding stimulus following a desired behavior, with the aim of increasing that behavior.

Punishment

The imposition of a penalty or sanction on an individual or entity for violating rules, norms, or expectations.

Unpleasant Event

An occurrence that causes discomfort or distress to individuals involved.