Assuming Pure Competition, Which of the Following Are Equivalents

question 14

Multiple Choice

Assuming pure competition, which of the following are equivalents?

• A)MRP L / Pₗ = MRP C / P_c and Pₓ = 1/MC
• B)MRP L / Pₗ = MRP_c / P_c and Pₓ = AVC
• C)Pₓ = MC and MRPₗ / Pₗ = MRP C / P_c = 1
• D)Pₓ = MC and MP L / Pₗ = MP_c / P_c

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Definitions:

Straight-Line Depreciation

A technique for distributing the expense of a tangible asset uniformly throughout its operational lifespan.

After-Tax Discount

The reduction in price or value of an item, investment, or income after taxes have been deducted.

Income Taxes

Taxes levied by the government on individuals or corporations' net income or profit.

Straight-Line Depreciation

A method of allocating the cost of a fixed asset evenly over its useful life.