Table 14-11 Suppose That a Firm in a Competitive Market Faces the Faces

question 309

Multiple Choice

Table 14-11
Suppose that a firm in a competitive market faces the following prices and costs:
-Refer to Table 14-11. Marginal revenue equals marginal cost when the firm produces

• A)2 units.
• B)3 units.
• C)4 units.
• D)5 units.

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Definitions:

Availability Float

The time difference between when a deposit is made in a bank account and when the amount becomes available for use.

Collection Float

The time gap between when a check is deposited into a bank account and when the funds become available.

Opportunity Cost

Opportunity cost refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Net Float

The difference between checks written against and deposited in an account and those that have been cleared and charged against the account.