An Industry's Output Is Produced at the Lowest Possible Cost

question 27

Multiple Choice

An industry's output is produced at the lowest possible cost when

• A) firms' marginal costs are equal.
• B) firms minimize their average costs.
• C) all firms earn the same profit.
• D) output is evenly divided among the industry's firms.

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Definitions:

Resource Intensive

Describes processes, projects, or activities that require a large amount of resources, such as time, money, or labor, to be completed successfully.

Intangible Information

Data or knowledge that cannot be physically touched or quantified easily, often related to intellectual property, brand value, or organizational culture.

Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

Nonprofits

Organizations that operate for purposes other than making profits, focusing on social, charitable, cultural, educational, or scientific goals.