Which of the Following Is True

question 255

Multiple Choice

Which of the following is true?

• A) Price and average revenue are never equal.
• B) Price and marginal revenue are seldom equal under conditions of perfect competition.
• C) When a firm is operating under perfectly competitive market conditions, price and marginal cost will always be equal if the firm is maximizing profits.
• D) Average revenue equals price times quantity.

---

Definitions:

Merger

The combination of two or more companies into a single entity, where one survives and the others cease to exist independently, often to achieve greater efficiency and market share.

Cumulative Voting

A method of voting in corporate elections which allows shareholders to concentrate their votes on one candidate rather than spreading them out among several candidates.

Annual General Meeting

A mandatory yearly gathering of a company's interested shareholders where directors report on the year's results.

Directors

Directors are individuals elected by shareholders or appointed by other directors who oversee the management and decision-making processes of a corporation.