The Figure Given Below Shows Three Short Run Average Total

question 31

Multiple Choice

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-As the confectionary, Mrs. Fields' Cookies, gained popularity in California and decided to expand its operations to Utah, it was able to achieve economies of scale. This means that:

• A)property taxes were lower in its new location in Utah.
• B)transport and communication systems were more developed in Utah.
• C)wages were higher in Utah compared to California.
• D)expansion of output and firm size led to specialization among the workers.
• E)government policies were more favorable in Utah.

---

Definitions:

Physical Substance

Refers to tangible assets that have a concrete form and can be touched, as opposed to intangible assets.

Rights

Entitlements or privileges granted, typically to shareholders, such as the right to buy additional shares in certain circumstances.

Statement Of Financial Position

Another term for a balance sheet, a financial document that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.