Which of the Following Statements Is True

question 80

Multiple Choice

Which of the following statements is true ?

• A) To maximize profits, a firm must maximize total revenue.
• B) In long-run equilibrium, a competitive firm produces at the point of minimum average total cost.
• C) In the short-run, a perfectly competitive firm produces where total cost is minimum.
• D) In the short-run, a perfectly competitive firm will close down whenever price is less than average total cost.

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Definitions:

Revenue Account(s)

Accounts that track the income generated from the sale of goods or provision of services before any expenses are deducted.

J. Higgins, Withdrawals

The amount of money withdrawn by J. Higgins from a business for personal use, affecting the owner's equity.

M. Sims Capital

An account representing the owner’s equity or the funds contributed by and belonging to the owner of a company.