An Industry Is Producing at the Least-Cost Rate of Production

question 126

Multiple Choice

An industry is producing at the least-cost rate of production when

• A) marginal cost is greater than average total cost.
• B) marginal revenue is greater than price.
• C) price and the minimum average cost are equal.
• D) price and marginal revenue are equal.

---

Definitions:

Default Risk

The possibility that a borrower will be unable to make the required payments on their debt obligations.

Days Payable Outstanding

A financial ratio that measures the average number of days a company takes to pay its suppliers; an indicator of how efficiently a company manages its payables.

Cash Receipts

The collection of money, including coins, currency, checks, and electronic transfers, received by a business or organization.

Default Risk

The possibility that a debtor will fail to fulfill their financial liabilities as agreed upon.