Which of the Following Is True of the Total Variable

question 10

Multiple Choice

Which of the following is true of the total variable cost curve in the short run?

• A)It depicts the law of decreasing returns to scale.
• B)It is a straight line parallel to the horizontal axis.
• C)It is independent of the production function.
• D)It lies below the short-run total cost curve.

---

Definitions:

Outside Basis

It refers to the tax basis, or the value of an individual's investment in an entity like a partnership or S corporation, outside of the company's own assets.

Contributed Property

Assets or property given to a charitable organization, potentially eligible for a tax deduction based on the property's fair market value.

Partnership Formation

The process of creating a partnership, which involves two or more parties joining together to carry on a trade or business, with each contributing money, property, labor, or skill.

Guaranteed Payments

Payments made by a partnership to a partner for services or the use of capital without regard to the partnership's income.