-As a Perfectly Competitive Firm's Output Increases,its Total Revenue ________

question 48

Multiple Choice

-As a perfectly competitive firm's output increases,its total revenue ________ and its total cost ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases
• E) does not change; increases

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Definitions:

Depreciation Expense

An accounting method for allocating the cost of a tangible asset over its useful life, representing the asset's consumption.

Accrual Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash transaction occurs.

Expenses Recorded

The process of documenting all the money spent during the operation of a business, used to track financial performance and for tax purposes.

Cash Paid

The total amount of cash disbursed by a company for various purposes, such as operating expenses, acquisitions, or investments.