Which of Following Is NOT True of an Equilibrium Price

question 32

Multiple Choice

Which of following is NOT true of an equilibrium price?

• A) Consumers who are willing to pay the equilibrium price can acquire the good.
• B) It measures the value of the last unit sold to consumers.
• C) It is always a fair price.
• D) Firms who are willing to accept the equilibrium price can sell what they produce.
• E) It measures the cost of resources required to produce the last unit.

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Definitions:

Managerial Accounting

The process of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the purpose of achieving organizational goals.

Management Accounting

The method of creating management reports and financial statements that offer precise and current financial and statistical data needed by managers for making daily and short-term choices.

Analytical Accounting

The practice of using financial and non-financial data to uncover trends and insights for business decision-making.

Planning

The process of making strategic decisions and setting objectives and goals for future organizational performance.