Table 14-2 The Table Represents a Demand Curve Faced by a Firm

question 232

Multiple Choice

Table 14-2
The table represents a demand curve faced by a firm in a competitive market.

-Refer to Table 14-2.For a firm operating in a competitive market,the marginal revenue from selling the 3rd unit is

• A) $12.
• B) $4.
• C) $3.
• D) $1.25.

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Definitions:

Responsibility Accounting

A system of accounting that involves assigning revenues and costs to the managers responsible for their incurrence, promoting accountability.

Average Month

A concept used to calculate the average results or performance over several months, smoothing out fluctuations.

Return on Investment

A financial metric measuring the profitability of an investment, calculated as net profit divided by the cost of the investment.

Responsibility Centers

Responsibility centers are parts of an organization treated as separate units for the purpose of assigning and evaluating financial performance.