It May Not Be Possible for fiRms to Produce at the Point

question 23

Multiple Choice

It may not be possible for firms to produce at the point where marginal profit is equal to zero when _____.

• A) fixed costs are negligible
• B) labour unions are highly influential
• C) the final product is not divisible
• D) capacity utilization is high

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Definitions:

Sample Space

The set of all possible outcomes of a probability experiment.

Tree Diagram

A graphical representation of all possible outcomes of a sequence of events, each branching out from the previous one.

Graphical Method

A technique of solving mathematical problems by representing them with graphs.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact by controlling and varying one or more variables.