The Diagram Below Shows the Demand Curve Facing a Single-Price

question 77

Multiple Choice

The diagram below shows the demand curve facing a single-price monopolist. FIGURE 10-4
-Refer to Figure 10-4.Suppose the firm is currently producing at point A on the demand curve,selling 100 units of output at a price of $60 per unit.If the firm moves to point B,the revenue the firm gives up on the units it was already selling is ________,and the revenue it gains on the additional units sold is ________.

• A)$1000; $5000
• B)$2000; $5000
• C)$5000; $2000
• D)$100; $200
• E)$100; $500

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Definitions:

Adjusting Entry

An entry made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Unearned Rent

Income received before the period to which it applies, requiring deferred revenue recognition until the service (rental period) is provided.

Adjusting Entry

An adjusting entry is a journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the appropriate period.

Prepaid Expense

Payments made in advance for goods or services to be received in the future, recognized as assets until used.