Which of the Following Is True in the Long Run

question 94

Multiple Choice

Which of the following is true in the long run?

• A)The average fixed cost curve is U-shaped.
• B)Average fixed cost exceeds average variable cost.
• C)All costs are variable.
• D)All costs are fixed
• E)The average total cost curve intersects the marginal cost curve at its minimum point.

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Definitions:

Net Operating Loss Carryforward

A tax provision that allows a company to apply a fiscal year's net operating losses to future years' profits in order to reduce taxable income.

Consolidated Tax Returns

A single tax return filed by a parent company and its subsidiaries, treating them as one taxpayer.

U.S. Tax Law

The body of laws and regulations governing the collection and administration of taxes in the United States.

Undistributed Earnings

Refers to the portion of a company's net profits that has not been paid out to shareholders as dividends but is retained for reinvestment in the business or to pay off debt.