Which of the Following Must Be True If a Price-Searcher

question 57

Multiple Choice

Which of the following must be true if a price-searcher firm is operating at the profit-maximizing output rate?

• A) The marginal cost of producing the last unit is greater than the marginal revenue derived from its sale.
• B) The marginal cost of producing the last unit is no greater than the marginal revenue derived from its sale.
• C) The total cost of producing all units is no greater than the total revenue derived from the sale of the units.
• D) The total cost of producing all units is less than the total revenue derived from the sale of the units.

---

Definitions:

Noncontrolling Interest

An ownership interest in a corporation or segment of a corporation that is less than a majority stake, often reflected as a minority interest in financial statements.

Intra-entity Gain

A profit recognized from transactions conducted within the same legal entity, often eliminated during consolidation for financial reporting.

Excess Annual Amortization

The amount by which the yearly amortization expense exceeds the norm or expected rate, often resulting from an aggressive write-down of intangible assets.

Accrual-based Net Income

Net income calculated using the accrual method of accounting, recognizing revenues when earned and expenses when incurred, regardless of when cash transactions occur.