If a Firm Increases Its Output in the ________ and Unit

question 25

Multiple Choice

If a firm increases its output in the ________ and unit costs ________,then the firm is experiencing ________ of scale.

• A) long-run; increase; diseconomies
• B) short-run; decrease; economies
• C) long-run; decrease; diseconomies
• D) short-run; decrease; diseconomies
• E) long-run; increase; economies

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Definitions:

Unearned Subscriptions

Revenue received in advance for subscriptions that have not yet been fulfilled.

Adjusting Entries

Journal entries made in an accounting period to update the records for accruals and deferrals that have not been fully recorded during the period.

Deferral

A future revenue or expense initially recorded as a liability or asset.

Prepaid Rent

An expense that is paid in advance for the use of property or equipment, recognized over the period of usage.