A Firm Should Continue Producing Until

question 162

Multiple Choice

A firm should continue producing until

• A) the cost of producing the output equals the revenues obtainable from selling the output.
• B) the cost of increasing output by one more unit equals the revenues obtainable from selling the extra unit.
• C) average costs are at a minimum.
• D) the average cost when another unit is produced equals the average revenue obtainable from selling the extra unit.

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Definitions:

Paid Suggestion Systems

Programs within organizations that reward employees financially for submitting practical and useful suggestions for improvement.

Secrecy

The act of keeping information hidden from those who do not have the authority or right to know.

Managerial Responses

The actions or strategies that managers take in response to external or internal stimuli in the business environment.

Feedback

Information provided by agents regarding aspects of one's performance or understanding, intended to guide future performance or actions.