Use the Following Two Columns of Items to Answer the Matching

question 51

Multiple Choice

Use the following two columns of items to answer the matching questions below:
-gross income

• A)interest earned from savings and debt securities
• B)forms used to report interest and deductions
• C)reportable income from any source
• D)earnings from stocks
• E)selling an asset for more than it cost

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Definitions:

Fixed Set-Up Costs

Initial costs that do not vary with the level of production or sales, such as equipment purchases or facility leases, needing to be paid before production starts.

Economies of Scale

The savings businesses gain from operating at a larger scale, where the expense for each unit produced diminishes as the scale enlarges.

Short Run

A period in which at least one input in the production process is fixed, limiting the ability of a firm to adjust to changes in market demand.

Long Run

An economic term referring to a period during which all factors of production and costs are variable, allowing for full adjustment to changes.