Figure 14-3 -Refer to Figure 14-3.When Price Rises from P3 to P4,the

question 345

Multiple Choice

Figure 14-3
-Refer to Figure 14-3.When price rises from P3 to P4,the firm finds that

• A) fixed costs decrease as output increases from Q3 to Q4.
• B) it can earn a positive profit by increasing production to Q4.
• C) profit is still maximized at a production level of Q3.
• D) average revenue exceeds marginal revenue at a production level of Q4.

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Definitions:

Static Budget

A projection of budget data at one level of activity.

Actual Activity

This refers to the measure of the real amount of production activity or work completed in a specified period.

Budget Reports

Financial statements that compare budgeted data to actual financial performance over a specific time period.

Planned Objectives

Specific, measurable goals that an organization or individual aims to achieve within a set timeframe.