Burt and Lisa Are Married and Live in a Common

question 119

Multiple Choice

Burt and Lisa are married and live in a common law state.Burt wants to make gifts to their five children in 2012.What is the maximum amount of the annual exclusion they will be allowed for these gifts?

• A)$130,000.
• B)$65,000.
• C)$26,000.
• D)$13,000.
• E)None of the above.

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Definitions:

Competitive Firm

A business that operates in a market where it has numerous competitors and cannot set prices but rather accepts market prices.

MC

Marginal Cost, the cost incurred from producing one additional unit of a good or service.

AVC

Average Variable Cost refers to the variable costs (such as labor and materials) per unit of output produced.

MR Output

The output level where marginal revenue equals marginal cost, guiding firms in maximizing their profitability.