If a Firm Is Producing Where MR > MC

question 108

Multiple Choice

If a firm is producing where MR > MC

• A) the revenue gained by producing one more unit of output exceeds the cost incurred by doing so.
• B) the revenue gained by producing one more unit of output equals the cost incurred by doing so.
• C) the revenue gained by producing one more unit of output is less than the cost incurred by doing so.
• D) the firm is already maximizing profits because revenue is being increased by more than costs.

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Definitions:

Deductions

Specific amounts subtracted from gross income to reduce the taxable income, including allowances, expenses, and exemptions.

Voucher Register

A journal that records all vouchers once they are approved, which includes amounts to be paid, to whom, and the accounts affected.

Approved Vouchers

Documents that have been verified and authorized for payment because they accurately reflect the goods or services received.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement to ensure accuracy.