The Table Given Below Shows the Average Total Cost of Production

question 86

Multiple Choice

The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5

-If a firm experiences economies of scale,

• A)it moves up along the long run average total cost curve.
• B)expansion of output becomes more expensive for the firm.
• C)the firm can reduce its per unit cost by producing less.
• D)the firm must shut down in the long run.
• E)the firm can reduce its per unit cost by expanding production.

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Definitions:

Managerial Accounting Report

An internal financial report tailored to meet the information needs of an organization's management for decision-making purposes.

Statement of Stockholders' Equity

A financial document that outlines the changes in the equity section of a company's balance sheet over a period, reflecting transactions like stock issuance, dividends, and earnings.

Schedule of Total Manufacturing Costs

This is a detailed statement summarizing the total costs—direct materials, direct labor, and manufacturing overhead—incurred during the production of goods in a specific period.

Annual Report

A comprehensive report on a company's activities, financial performance, and strategies throughout the preceding year, intended for shareholders and potential investors.