Ash Ltd Produces Commercial Glass Using Silica as a Raw Material

question 80

Multiple Choice

Ash Ltd. produces commercial glass using silica as a raw material. Assuming that the firm wants to maximize profits, when the price of silica falls, the firm will _____.

• A) shut down production completely
• B) continue to produce the same level of output
• C) use substitutes for silica in production
• D) increase the level of output produced

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Definitions:

Profit Centers

Divisions or segments of a business that directly contribute to its profits through their activities and performance.

Incentives

Motivations or rewards designed to encourage specific behaviors or actions from people or organizations.

Information

Data that is processed, organized, or presented in a manner that adds value or understanding to the recipient.

Profit Centers

Segments or units within a business that are responsible for generating profits and are evaluated based on their profitability.