Use the Figure Below to Answer the Following Question

question 63

Multiple Choice

Use the figure below to answer the following question.

Figure 12.3.4
-Refer to Figure 12.3.4, which shows cost curves of Paul's Picture Frames Inc. The picture frame market is perfectly competitive and the market price is $12 a frame. Paul produces ________ frames each week and makes ________ total revenue.

• A)20; $240
• B)20; $96
• C)zero; zero
• D)30; $360
• E)30; zero

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Definitions:

Theater Tickets

Documents that grant the holder the right to enter a theater and see a performance.

Performance

The act of executing or accomplishing work, tasks, or duties, often measured against predefined standards.

Prepaid Rent

Represents the payment of rent in advance before it is due, recorded as an asset on the balance sheet until it is expensed.

Deferral

An accounting concept where revenue or expense is recognized at a date later than the point when cash was originally exchanged.