If There Are No Fixed Costs and Marginal Cost Is

question 27

Multiple Choice

if there are no fixed costs and marginal cost is constant at $56, the price elasticity of demand at the profit-maximizing level of output is closest to

• A)-0.28.
• B)-7.09.
• C)-3.55.
• D)-14.18.
• E)-0.14.

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made for errors, accruals, and deferrals.

Trial Balance

A bookkeeping report that lists the balances of all ledgers in two columns, debits and credits, to verify that total debits equal total credits.

Note Receivable

A written promise to pay a specified amount of money, along with interest, by a certain date, recognized as an asset on the balance sheet.