Consider a Competitive Market with a Large Number of Identical

question 279

Multiple Choice

Consider a competitive market with a large number of identical firms.The firms in this market do not use any resources that are available only in limited quantities.In long-run equilibrium,market price is determined by

• A) the minimum point on the firms' average variable cost curve.
• B) the minimum point on the firms' average total cost curve.
• C) a firm's level of sunk costs.
• D) Both b and c are correct.

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Definitions:

Revenue Recognition Principle

A concept of accounting that states that revenues are recorded when earned, which is when the services have been performed or products have been delivered to customers.

Recorded

The action of entering financial transactions into the accounting records of a business.

Recorded

The process of documenting financial transactions in the books of accounts as evidence of the transactions.

Relate

To establish a connection or relationship between two or more things.