The Following Information Is Provided from EZ Electronics' Annual Report $\bold{2011}$

question 127

Multiple Choice

The following information is provided from EZ Electronics' annual report for the years ended December 31:

-Refer to the EZ Electronics annual report above.Using horizontal analysis with 2010 as the base year, $\bold{2011}$ income before taxes would be represented as ________.

• A)13%
• B)105%
• C)31%
• D)131%

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Definitions:

Marginal Cost

The cost of producing one additional unit of a good or service, used in decision-making on production levels.

Average Total Cost

The average cost per unit of output expressed as the total production cost divided by the number of units produced.

Average Total Cost

The total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Efficient Scale

The level of production at which a firm operates with the lowest average total costs, achieving economies of scale without incurring diseconomies of scale.