If a Competitive Firm's Marginal Cost Curve Is U-Shaped, Then

question 77

Multiple Choice

If a competitive firm's marginal cost curve is U-shaped, then:

• A) its short-run supply curve is U-shaped too
• B) its short-run supply curve is the downward-sloping portion of the marginal cost curve
• C) its short-run supply curve is the upward-sloping portion of the marginal cost curve
• D) its short-run supply curve is the upward-sloping portion of the marginal cost curve that lies above the short-run average variable cost curve
• E) its short-run supply curve is the upward-sloping portion of the marginal cost curve that lies above the short-run average total cost curve

Perform journal entries for various business transactions, applying the double-entry bookkeeping system.

Calculate the cash balance at the beginning and end of a period given transactions data.

Construct and interpret charts of accounts numbering systems.

Analyze and correct errors in accounting entries, including those affecting supplies and accounts receivable/payable.

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Definitions:

Diminishing Marginal Utility

Declining utility, or satisfaction, derived from each additional unit consumed of a particular good or service.

Consumer Surplus

The variance between the total price consumers are inclined and financially capable of paying for a good or service and the amount they actually dispense.

Marginal Utility

The extra utility or satisfaction derived from using or consuming one additional unit of a good or service beyond what was previously consumed.

Total Utility

The total satisfaction received from consuming a particular amount of goods or services.