With the Total Cost and Total Revenue Curves, We Measure

question 24

Multiple Choice

With the total cost and total revenue curves, we measure economic profit by the ________ between the two curves.With the per-unit curves, we measure economic profit by a(n) _______.

• A)vertical distance, horizontal distance
• B)vertical distance, area
• C)area, area
• D)area, vertical distance
• E)horizontal distance, area

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Definitions:

Debit

A ledger entry contributing to the growth of assets or lessening of liabilities in a company's financial statement.

Credit

The provision of resources (such as money) by one party to another party where the second party does not reimburse the first party immediately, but promises either to repay or return those resources at a later date.

Transposition Error

A common accounting mistake where numbers are mistakenly reordered, leading to inaccurate data entry.

Trial Balance

A worksheet used in accounting that compiles all ledger balances into matching total amounts in debit and credit columns.