Which Statement Is True? in the Short Run,a Perfect Competitor

question 188

Multiple Choice

Which statement is true? In the short run,a perfect competitor will

• A)operate at its most efficient output only if it is making a profit.
• B)operate at its most efficient output only if it is taking a loss.
• C)operate at its most efficient output if it is making a profit or taking a loss.
• D)not operate at its most efficient output if it is making a profit or taking a loss.

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Definitions:

Debits

Entries on the left-hand side of an accounting ledger, indicating increases in assets or expenses or decreases in liabilities or equity.

Transactions

Economic activities or events that affect the financial position of a company and can be quantified in monetary terms.

Journal Entries

Written records of all the financial transactions of a business, which are then used to prepare financial statements.

Debits Equals Credits

A fundamental principle of accounting stating that for every transaction, the total debits must equal the total credits in a double-entry bookkeeping system.