Refer to Figure 22

question 139

Multiple Choice

Refer to Figure 22.3 for a perfectly competitive firm. If the market price is $23,

• A) The firm should produce 31 units.
• B) Economic profits are zero.
• C) The firm should produce 25 units.
• D) The firm will have above-normal profits.

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Definitions:

Journal Entries

Recorded business transactions in the accounting records of a company, listed in the general journal.

Adjusting Journal Entries

Entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Closing Journal Entries

Entries made in the accounting records at the end of an accounting period to transfer balances from temporary to permanent accounts.

Salary Expense

An expense account that records the total amount of salary payments made to employees over a period of time.