Refer to the Graph Shown

question 9

Multiple Choice

Refer to the graph shown. If the firm increases output from 30 to 40, total revenue will increase:

• A) more than total cost, and so profit will increase.
• B) more than total cost, and so profit will decrease.
• C) less than total cost, and so profit will increase.
• D) less than total cost, and so profit will decrease.

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Definitions:

Face Value

The nominal or original value of a security or financial instrument as stated by the issuer, unrelated to its market value.

Specific Date

Refers to a detailed and exact date on the calendar specified for an event or deadline.

Premium

The excess of the issue price of a stock over its par value or the excess of the issue price of bonds over their face amount.

Straight-Line Method

A depreciation method where the same amount of depreciation expense is allocated evenly over the useful life of an asset.