Which of the Following Expressions Is Correct for a Competitive

question 154

Multiple Choice

Which of the following expressions is correct for a competitive firm?

• A)profit = (quantity of output) x (price - average total cost)
• B)marginal revenue = (change in total revenue)/(quantity of output)
• C)average total cost = total variable cost/quantity of output
• D)average revenue = (marginal revenue) x (quantity of output)

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Definitions:

Subchapter S Stock

Shares of a corporation that elects to pass corporate income, losses, deductions, and credits to shareholders for federal tax purposes.

Corporate Charitable Contributions

Contributions made by a corporation to charitable organizations which are often tax-deductible.

Corporate Formation

Corporate formation refers to the legal process involved in creating a corporate entity or company, which includes filing the necessary documents with state authorities and fulfilling all legal requirements to start business operations.

Taxable Gain

The profit that is subject to taxation, realized from the sale of assets or investments.