What Is the Term Used for the Difference Between the Equipment

question 87

Multiple Choice

What is the term used for the difference between the Equipment account and the Accumulated Depreciation-Equipment account?

• A) contra asset
• B) market value
• C) historical cost
• D) book value

---

Definitions:

Marginal Revenue

The supplementary earnings obtained by selling one more unit of a good or service.

Profit-Maximizing

The process or strategy of adjusting production and pricing to achieve the highest possible profit.

MR = MC

A condition where the marginal revenue (MR) equals marginal cost (MC), which is the profit maximizing level of output for a firm under perfect competition.

Marginal Revenue

The increased income derived from the sale of one extra unit of a good or service.