Which of the Following Statements Is True

question 67

Multiple Choice

Which of the following statements is true?

• A)When operating income is positive,revenue is greater than expenses.
• B)When net income is negative,retained earnings decrease,all other things being equal.
• C)When net income is positive,Shareholders' equity increases,all other things being equal.
• D)All of the answers are acceptable.

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Definitions:

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Kinked-Demand Model

An economic model suggesting that prices in an oligopoly are stable because firms will match price decreases but not price increases due to a kink in the demand curve.

Price Changes

Adjustments in the cost of goods or services in the economy, which can be influenced by factors such as supply and demand or inflation.