For a Perfectly Competitive Firm, Total Revenue Is Equal to

question 19

Multiple Choice

For a perfectly competitive firm, total revenue is equal to

• A) marginal cost × quantity.
• B) marginal revenue × quantity.
• C) total revenue × quantity.
• D) the market price.

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Definitions:

Standard Price

The predetermined cost that a company expects to pay for goods and services; used in budgeting and cost control.

Actual Materials

The real quantity and cost of materials used in the production process, as opposed to estimated or standard materials.

Material Price Variance

The difference between the actual cost of direct materials used in production and the standard cost of those materials.

Standard Purchase Price

The predetermined cost of acquiring goods, set for budgeting and costing purposes.