Exhibit 7-2  Total Revenue and Total Cost Graph at an Output

question 206

Multiple Choice

Exhibit 7-2  Total revenue and total cost graph At an output of 250 units, as shown in Exhibit 7-2, marginal cost is:

• A) greater than marginal revenue.
• B) equal to marginal revenue.
• C) less than marginal revenue.
• D) none of the above.

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Definitions:

Inventory Period

The average time it takes for a company to convert its inventory into sales.

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business.

Controller

A senior financial officer within a company responsible for overseeing accounting operations, financial reporting, and internal controls.