If a monopolistically competitive firm is producing 800 units of output and the marginal revenue from producing the 800th unit of output is $2.25 and the marginal cost is $2.25, which of the following is true?
A) The firm maximizing profit.
B) The firm should increase production to maximize profit.
C) The firm should decrease production to maximize profit.
D) The difference between marginal revenue and marginal cost (MR - MC) at the 1,200th unit is positive.
A) The firm maximizing profit.
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The U.S. Constitution provision that requires the government to compensate property owners when it takes private property is called ________.
A. the Due Process Clause of the Fourteenth Amendment B. the Establishment Clause of the First Amendment C. the Commerce Clause D. Just Compensation Clause
An auditor concluded that no excessive costs for an idle plant were charged to inventory. This conclusion most likely related to the auditor's objective to obtain evidence about the financial statement assertions regarding inventory, including presentation and disclosure, and:
A. existence. B. rights and obligations. C. valuation and allocation. D. completeness.
Which of the following statements is true concerning prior service cost?
A) Prior service costs are the costs of retroactive benefits. B) Prior service cost is reported as a liability at the date of the plan amendment. C) Prior service cost is reported as a negative element of other comprehensive income at the date of the plan amendment. D) All of these answer choices are correct.
At the end of the current year, using the aging of receivable method, management estimated that $23,250 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $625. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
A.
| Accounts Receivable | 23,875? | |
| Allowance for Doubtful Accounts | 23,875? |
B.
| Bad Debts Expense | 23,250? | |
| Allowance for Doubtful Accounts | 23,250? |
C.
| Bad Debts Expense | 23,875? | |
| Allowance for Doubtful Accounts | 23,875? |
D.
| Accounts Receivable | 23,250? | |
| Bad Debts Expense | 625? | |
| Sales | 23,875? |
E.
| Bad Debts Expense | 22,625? | |
| Allowance for Doubtful Accounts | 22,625? |