Refer to the Accompanying Graph to Answer the Following Questions

question 4

Multiple Choice

Refer to the accompanying graph to answer the following questions.

-All firms,no matter what type of firm structure they are producing in,make their production decisions based on the point where their

• A) total revenue equals total cost.
• B) marginal revenue equals marginal costs.
• C) profits are equal to zero.
• D) marginal revenue equals price.
• E) average total cost is minimized.

---

Definitions:

Personally Insolvent

Personally Insolvent refers to an individual's financial state where they are unable to pay their debts as they come due.

Claims of Creditors

The rights of creditors to receive payment from a debtor's assets.

Journal Entry

An accounting transaction recorded in a journal such that it includes the date, accounts affected, amounts, and description of the transaction.

Debit

An accounting entry that represents either an increase in assets or expenses or a decrease in liabilities, equity, or revenue.