Figure 10.18 -Refer to Figure 10.18.Which of the Following Statements Is True

question 224

Multiple Choice

Figure 10.18
-Refer to Figure 10.18.Which of the following statements is true?

• A)D_a represents the long-run demand curve facing a monopolistic competitor in a constant-cost industry while D_b depicts the demand curve in the short run.
• B)D_a represents the long-run demand curve facing a monopolistic competitor in a constant-cost industry while D_b depicts the long-run demand curve in an increasing-cost industry.
• C)D_a represents the long-run demand curve facing a perfect competitor while D_b depicts the long-run demand curve facing a monopolistic competitor.
• D)D_a represents the long-run supply curve in a perfectly competitive, constant-cost industry while D_b depicts the long-run demand curve facing a monopolistic competitor in a decreasing-cost industry.

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Definitions:

Realizable Revenue

The amount of revenue that is considered to be collectible from goods sold or services rendered.

Revenue Recognition

The accounting principle that income should be reported in the accounting period when it is earned, regardless of when the cash is received.

Percentage of Completion

An accounting method used to recognize revenues and expenses of long-term contracts as a percentage of work completed during the period.