-The Figure Above Shows the Competitive Market for Slices of Key

question 92

Multiple Choice

-The figure above shows the competitive market for slices of key lime pie.If the production is 40 slices per day,someone is willing to buy another slice of pie for

• A) more than it costs to produce the slice.
• B) less than it costs to produce the slice.
• C) an amount equal to the cost of producing the slice.
• D) an amount equal to the cost of producing all 40 slices.
• E) an amount that is not comparable to the cost of producing the slice.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the U.S. to govern financial reporting and ensure consistency.

Accounting Standards

Rules and guidelines used in the preparation and presentation of financial statements to ensure accuracy, completeness, and consistency.

Asset

Anything of value owned by a company.

Business

All profit-seeking activities and enterprises that provide goods and services necessary to an economic system.