-Fast Copy Is a Perfectly Competitive Firm

question 89

Multiple Choice

-Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. If the market price is 4 cents per page, what is Fast Copy's profit- maximising level of output?

• A) 64 pages per hour
• B) 32 pages per hour
• C) 48 pages per hour
• D) 16 pages per hour

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Definitions:

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, rather than continuously.

Purchases Discounts

Purchases discounts are reductions in price given by suppliers to buyers for early payment of invoices.

Credit Memo

A document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller typically due to a return or an error in billing.

Recognition of Cost

The accounting principle that requires expenses to be recorded in the period in which they are incurred, regardless of when the payment is made.