What Is True for the Perfectly Competitive Firm's Output Level

question 20

Multiple Choice

What is true for the perfectly competitive firm's output level at the break-even point?

• A) price = marginal revenue = average total cost
• B) marginal revenue = price < marginal cost
• C) marginal revenue = price> marginal cost
• D) marginal revenue < price = marginal cost
• E) price > marginal revenue = marginal cost

---

Definitions:

Revenue Accounts

Accounts recording the income a company generates from its operations, not related to its investments or other sources.

Gain Accounts

Accounts reflecting increases in equity, other than those relating to contributions from equity participants, typically from transactions and other events affecting the entity.

Debited

To be debited means an amount has been recorded on the left-hand side of a financial account, indicating an increase in assets or a decrease in liabilities.