The Major Advantage of Using Cross-Sectional Analysis for Long-Run Costs

question 6

Multiple Choice

The major advantage of using cross-sectional analysis for long-run costs studies includes

• A)the inclusion in the sample of different plants of different sizes.
• B)the avoidance of having to adjust for inflationary trends.
• C)the avoidance of having to account for interregional cost differences.
• D)All of the above
• E)A and B above

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Definitions:

Account

A record summarizing all transactions related to a particular item in the financial statements.

Accounts Receivable

Money owed to a company by its clients or customers for goods or services delivered but not yet paid for.

Credit Sales

Sales made by a business where payment is not received at the time of sale but is instead deferred to a future date, typically involving an agreement or credit terms.

Customer Payments

Monies received by a company from its customers in exchange for goods or services provided.