Which of the Following Statements About Marginal Analysis Is True

question 137

Multiple Choice

Which of the following statements about marginal analysis is true?

• A)An important factor in marginal analysis is predicting demand,which is an exact science.
• B)Marginal analysis is typically a straightforward procedure to apply in real- life situations.
• C)The cost of producing a unit beyond the point when marginal cost equals marginal revenue is much less than the revenue from the sale of that unit.
• D)Marginal revenue is also the demand curve,so it represents the amount customers will buy at different prices.
• E)Profit is maximized at the point at which marginal cost is exactly equal to marginal revenue.

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Definitions:

Modular Organization

A flexible organizational structure that consists of separate business units or modules, each focusing on a different product or service area.

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