A Firm Will Maximize Profit by Producing That Level of Output

question 92

Multiple Choice

A firm will maximize profit by producing that level of output at which

• A)the additional revenue from the last unit sold is equal to the additional cost of the last unit by the largest amount.
• B)the average or unit cost of production is minimized.
• C)the fixed costs of production are minimized.
• D)total revenue equals total cost.
• E)all of the above

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Definitions:

Computer Hardware

The physical components of a computer system, such as the CPU, RAM, and hard drives.

Expert System

A computer program that uses artificial intelligence techniques to simulate the judgment and behavior of a human or an organization with expert-level knowledge in a specific field.

Optimal Layout

The most efficient arrangement of resources, equipment, and spaces within a facility to maximize productivity and reduce costs.

Decision Support System

A computerized information system used to support decision-making activities, gathering and analyzing data to help make informed choices.