Profit Can Be Maximized Only Where Marginal Revenue Equals

question 204

Multiple Choice

Profit can be maximized only where marginal revenue equals

• A)average cost.
• B)total cost.
• C)marginal cost.
• D)average cost

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Definitions:

Units-Of-Activity

A method for allocating depreciation based on the actual usage, work, or units of production of the asset, rather than passage of time.

Residual Value

The approximate worth of an asset when it reaches the end of its usable life.

Depreciable Cost

This refers to the total cost of an asset that is subject to depreciation over its useful life, including the purchase price and any additional costs necessary to make the asset usable.

Journal Entry

A record of a transaction in the general journal, indicating the accounts and amounts to be debited and credited.