The Total Cost Schedule for a Competitive Firm Is Given

question 2

Multiple Choice

The total cost schedule for a competitive firm is given by: $$\begin{array} { c c } \text { Output } & \text { Tatal Cost } \\\hline 0 & \$ 10 \\1 & 60 \\2 & 80 \\3 & 110 \\4 & 165 \\5 & 245 \\\hline\end{array}$$ If market price is $60,how many units of output will the firm produce?

• A)Zero units of output because the firm shuts down.
• B)1 unit of output.
• C)2 units of output.
• D)3 units of output.
• E)none of the above.

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Definitions:

Level Strategy

A business approach that maintains steady production rates and workforce levels, even in the face of demand fluctuations, aiming for operational stability.

Production Planner

A professional responsible for scheduling and coordinating manufacturing processes to meet demand and optimize resources.

Aggregate Planning

A process by which a company determines ideal levels of capacity, production, subcontracting, inventory, and labor for medium-term future periods to meet forecasted demand.

Overtime

Additional time worked by an employee beyond the normal or legally defined working hours, usually compensated at a higher pay rate.