A Firm Will Expand the Amount of Output It Produces

question 265

Multiple Choice

A firm will expand the amount of output it produces as long as its

• A) average total revenue exceeds its average total cost.
• B) average total revenue exceeds its average variable cost.
• C) marginal cost exceeds its marginal revenue.
• D) marginal revenue exceeds its marginal cost.

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Definitions:

Installment Accounts Receivable

Amounts owed by customers for purchases made on credit that are to be paid in regular, periodic installments.

Non-current Asset

An asset that is not expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Promissory Note

A written promise to pay a specified amount of money to a certain entity on demand or at a fixed or determinable future time.

Future Date

A specified day in the future, often related to scheduling events, deadlines, or financial transactions.