The Perfectly Competitive Firm Maximizes Profits by Producing at the Rate

question 72

Multiple Choice

The perfectly competitive firm maximizes profits by producing at the rate of output where:

• A)marginal revenue and marginal cost are equal.
• B)marginal revenue exceeds marginal cost by the greatest amount.
• C)the profit per unit is the highest.
• D)marginal cost is at its minimum.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure accuracy.

Accounts Receivable

Dues from clients to a corporation for goods or services already benefited from but yet to be paid for.

Debit Entries

Accounting records that increase an asset or expense account, or decrease a liability, equity, or revenue account.

Credit Entries

Accounting entries that increase liability or equity accounts or decrease asset or expense accounts.