In Order to Maximize Profit,a Firm That Sells Its Output

question 50

Multiple Choice

In order to maximize profit,a firm that sells its output in two markets will allocate total output between the two markets so that:

• A)marginal revenue is equal in the two markets
• B)marginal revenue for the firm is equal to the sum of the marginal revenues
• C)marginal revenue for the firm is equal to the sum of the marginal costs
• D)both a and b
• E)none of the above

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Definitions:

Supply Chain Cost

The accumulated costs associated with all activities in the supply chain, including production, transportation, and distribution.

Supply Chain Surplus

The added value produced through the supply chain process, measured by the difference between the value of the final product to the consumer and the costs of its production.

Customer Value

The perception of what a product or service is worth to a customer versus the possible alternatives, measured by the benefits it provides over the cost.

Supply Chain Cost

The total expenses incurred in the production, transportation, and distribution of goods or services within a supply chain.