Which of the Following Conditions Would Result in the Short

question 25

Multiple Choice

Which of the following conditions would result in the short run marginal cost curve not correctly reflecting the supply behavior of a profit maximizing firm?

• A)The firm is a price taker.
• B)Price exceeds average total cost.
• C)The elasticity of demand facing the firm is ?3.
• D)the firm can vary several inputs in the short run.

---

Definitions:

Infrequent

Occurring or happening rarely or at wide intervals.

Extraordinary Item

An unusual or infrequent event that is not part of the normal activities of a business and must be reported separately in the financial statements.

Discontinued Operations

Parts of a company's core business or subsidiaries that have been sold, disposed of, or abandoned and are reported separately from continuing operations in financial statements.

Comparative Income Statement

A financial statement that presents the revenues, expenses, and net income for multiple periods to assess a company's financial performance over time.