If Increasing Returns Is in Effect

question 39

Multiple Choice

If increasing returns is in effect

• A)average costs rise.
• B)marginal costs rise.
• C)marginal costs fall.
• D)average revenue is constant.

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Definitions:

Business Truck

A vehicle used for carrying goods related to a person’s business or commercial activities.

Holding Period

The length of time an investment is held by an individual or entity, affecting the tax treatment of any gains or losses.

Like-kind Exchange

A tax-deferred transaction allowing for the exchange of similar types of property without generating a tax liability from the sale.

Involuntary Conversion

An event where property or assets are destroyed, stolen, confiscated, or condemned, forcing the owner to replace them or receive compensation, often with tax implications.