If a Competitive Firm Is Selling 1,000 Units of Its

question 360

Multiple Choice

If a competitive firm is selling 1,000 units of its product at a price of $8 per unit and earning a positive profit,then

• A) its average revenue is greater than $8.
• B) its marginal revenue is less than $8.
• C) its total cost is less than $8,000.
• D) All of the above are correct.

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Definitions:

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government, such as both state and federal taxes on the same income.

S Corporation

A special designation for a corporation that allows income, losses, deductions, and credits to be passed through to shareholders for tax purposes.

Dual Purpose Corporation

A business entity designed to operate for both profit and to achieve a social or charitable goal.

General Partnership

A partnership in which the partners divide profits and management responsibility and share unlimited personal liability for the partnership’s debts.