Which of the Following Ways Does Demand Influence Profit

question 52

Multiple Choice

Which of the following ways does demand influence profit?

• A)It predicts how many units will be sold.
• B)It directly influences the fixed cost of production.
• C)It helps in reducing the variable cost of production.
• D)It reduces the unit cost of production.

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Definitions:

Marginal Product

Marginal product is the additional output that is produced by adding one more unit of a specific input, holding all other inputs constant.

Optimal Labor Employment

The most efficient allocation of labor resources in a business to maximize productivity and minimize costs.

Ovens

Appliances designed for baking, heating, or roasting food, powered variously by electricity, gas, or other fuels.

Marginal Product

The additional output produced by using one more unit of a particular input, holding other inputs constant.