In Pure Competition, Each Extra Unit of Output That a Firm

question 45

Multiple Choice

In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that is

• A)equal to the price.
• B)less than the price.
• C)greater than the price.
• D)equal to the average cost.

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Definitions:

Job Order Costing System

An accounting method used to track the production costs (materials, labor, and overhead) for specific jobs or batches of product.

Service Organizations

Companies that provide services rather than tangible goods to customers, focusing on professional skills and expertise.

Job Order Cost System

An accounting system that tracks costs individually for each job rather than using a standard rate, suitable for customized job production.

Service Organizations

Businesses that provide intangible products or services and typically create value for customers through service delivery.