When a Competitive Firm Doubles the Quantity of Output It

question 492

Multiple Choice

When a competitive firm doubles the quantity of output it sells, its

• A)total revenue doubles.
• B)average revenue doubles.
• C)marginal revenue doubles.
• D)profits must increase.

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Definitions:

SUTA Tax Payable

The liability owed by employers to the state for the State Unemployment Tax Act, used to fund unemployment benefits.

Payroll Tax Expense

Payroll Tax Expense is the employer's cost associated with the employment of staff, including taxes such as social security and Medicare taxes that must be paid based on salaries.

Wages Payable

A liability account representing the amount owed to employees for work performed but not yet paid.

Gross Earnings

The total income earned by an individual or business before any deductions like taxes and social security contributions.