Which of the Following Statements Is Correct

question 65

Multiple Choice

Which of the following statements is correct?

• A) If the profit-maximizing rule is fulfilled, it necessarily follows that the cost-minimization rule is being fulfilled.
• B) The profit-maximizing and the cost-minimizing rules are such that fulfilling one has no bearing on fulfilling the other.
• C) If the profit-maximizing rule is fulfilled, the cost-minimization rule may or may not be fulfilled.
• D) If the cost-minimization rule is fulfilled, it necessarily follows that the profit-maximizing rule is being fulfilled.

Examine the role of ethnic and nationalistic tensions in the disintegration of Yugoslavia and subsequent conflicts.

Discern the environmental and political implications of technological and ecological disasters.

Understand the basic structure and purpose of experimental research.

Identify the roles of independent and dependent variables in experimental designs.

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Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even sales, indicating the risk cushion for not incurring losses.

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, indicating how much it contributes to covering fixed costs and generating profit.

Cost Volume Profit Analysis

A method used to determine how changes in costs and volume affect a company's operating income and net income.

Long-Run Decision Making

Strategic decisions focused on long-term goals and considerations, typically involving investments in capacity or capabilities that affect a firm's structure.