(Figure: Market for Walnuts I) the Graph Depicts the Perfectly

question 63

Multiple Choice

(Figure: Market for Walnuts I) The graph depicts the perfectly competitive market for walnuts. Which of the following statements is (are) TRUE? I. The demand curve facing a walnut grower is perfectly elastic at $1.
II) If a walnut grower sold 80,000 pounds of walnuts, his total revenue would be $138,400.
III) If a walnut grower sold one more pound of walnuts, his total revenue would increase by $1.73.

• A) I, II, and III
• B) II
• C) II and III
• D) I

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Definitions:

Acquisition Method

An accounting method used in business combinations, where the purchasing entity records the assets and liabilities of the acquired entity at fair value.

Internal Reporting

The process of preparing and presenting financial statements and other reports to management within an organization.

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting in the U.S.