Which of the Following Statements Is Correct

question 105

Multiple Choice

Which of the following statements is correct?

• A)For all firms, marginal revenue equals the price of the good.
• B)Only for competitive firms does average revenue equal the price of the good.
• C)Marginal revenue can be calculated as total revenue divided by the quantity sold.
• D)Only for competitive firms does average revenue equal marginal revenue.

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Definitions:

Law Firm

A business entity formed by one or more lawyers to engage in the practice of law.

Manufacturer

Business that makes a product and sells it to its customers.

Accounting Organization

An entity or structured group that sets accounting standards, rules, and provides guidance for accounting practices and procedures.

Corporation

A legal entity distinct from its owners, possessing rights to own property, incur debts, sue and be sued.