If, for the Last Unit of a Good Produced by a Perfectly

question 66

Multiple Choice

If, for the last unit of a good produced by a perfectly competitive firm, MR > MC, then in producing that unit the firm

• A)added more to total costs than it added to total revenue.
• B)added more to total revenue than it added to total costs.
• C)added an equal amount to both total revenue and total costs.
• D)maximized profits or minimized losses.

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period of time, illustrating the company's financial performance.

Supplies

Items used in the daily operations of a business, such as office or cleaning supplies, not directly tied to the products or services sold.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjustments have been made for balances at the end of an accounting period.

Adjusting Journal Entries

Entries made in the general journal at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.