Which Party Is Given the Responsibility of Liquidating a Firm

question 69

Multiple Choice

Which party is given the responsibility of liquidating a firm if it is necessary to do so?

• A) the bankruptcy judge
• B) the creditors of the firm
• C) the bankruptcy trustee
• D) the creditors committee

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Definitions:

Increasing Returns

An increase in firm’s output by a larger percentage than the percentage increase in its inputs.

MC

Marginal Cost, the change in total production cost that comes from making or producing one additional unit.

ATC

Average Total Cost, which is the total cost divided by the number of goods produced, representing the per-unit production cost.

AVC

Average Variable Cost; the total variable cost divided by the quantity of output produced, indicative of variable costs per unit of output.