If the Market Price Was Below the ATC and at the Current

question 105

Multiple Choice

If the market price was below the ATC and at the current firm's rate of production the MC was less than the market price an increase in output would:

• A) cause economic profits to be positive.
• B) cause economic profits to be zero.
• C) increase profit but economic profits would still be negative.
• D) increase profit and economic profits would be positive.

Understand the fundamental concepts and differences between process cost systems and job order cost systems.

Identify the characteristics and applications of process cost systems in manufacturing.

Understand how equivalent units of production are used and calculated in process costing.

Comprehend how costs are accumulated and assigned in a process cost system.