"As Long as Total Revenue Slopes Up, Marginal Revenue Must

question 162

Essay

"As long as total revenue slopes up, marginal revenue must slope up also." Explain whether this statement is true or false.

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Definitions:

Owner's Drawings Account

An account that tracks the funds withdrawn by the owner from the company for personal use.

Closing Entry

Journal entries used to transfer temporary account balances to permanent accounts and to reset the balances of temporary accounts to zero at the end of each accounting period.

Revenue Accounts

Accounts used to record the income generated from a company’s core operating activities.

Expense Accounts

These are ledgers that track the costs incurred by a business during its operations, excluding the purchase of inventory.