Refer to the Accompanying Table A) $6
B) $8

question 56

Multiple Choice

Refer to the accompanying table. A firm participating in a competitive market with these costs would always shut down if the price is: $\begin{array}{lll}\text { Price }&\text { Average Fixed Cost }&\text { Average Vaxiable Cost }\\\$ 2 & \$ 5 & \$ 6 \\\$ 4 & \$ 3 & \$ 4 \\\$ 6 & \$ 1 & \$ 5 \\\$ 8 & \$0.50 & \$ 7\end{array}$

• A) $6.
• B) $8.
• C) $4.
• D) $2.
• E) either $6 or $8.

---

Definitions:

Creditor's Account

An account maintained to record transactions involving credit purchases or loans received, indicating the amount owed to suppliers or lenders.

General Journal

A fundamental bookkeeping document designed to systematically record every business transaction by date.

Revenue Journal

A specialized accounting journal used to record all the revenue transactions of a business, ensuring they are accounted for in the period they are earned.

Office Supplies

Items used in offices for daily operations, including paper, pens, and other materials not directly linked to the manufacturing process.