Which of the Following Statements Is Correct

question 7

Multiple Choice

Which of the following statements is correct?

• A)Buyers determine supply,and sellers determine demand.
• B)Buyers determine demand,and sellers determine supply.
• C)Buyers determine both demand and supply.
• D)Sellers determine both demand and supply.

---

Definitions:

Break-Even

The juncture where the overall expenditures match the total income, resulting in neither a profit nor a loss.

Economic Profits

Profits exceeding the opportunity costs of all resources used, including both explicit and implicit costs.

Accounting Profits

The difference between total revenues and explicit costs, representing the net income a company reports on its financial statements.

Most Efficient Output

The level of production at which a firm operates with the lowest average total cost, achieving optimal efficiency.