The Figure Given Below Shows the Revenue and Cost Curves

question 40

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-If a profit-maximizing, perfectly competitive firm is making only a normal profit in the short run, then the firm is in:

• A)disequilibrium.
• B)equilibrium where MR exceeds minimum ATC.
• C)equilibrium where MR equals minimum AVC.
• D)equilibrium where P = AFC.
• E)equilibrium where P = ATC

Understand and apply the equity method of accounting for investments in common stock.

Calculate and defer intra-entity gross profit from inventory transfers.

Determine the gain or loss on intra-entity asset transfers.

Analyze and prepare consolidation entries related to inventory and equipment transfers.

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