A Firm Will Expand the Amount of Output It Produces

question 265

Multiple Choice

A firm will expand the amount of output it produces as long as its

• A) average total revenue exceeds its average total cost.
• B) average total revenue exceeds its average variable cost.
• C) marginal cost exceeds its marginal revenue.
• D) marginal revenue exceeds its marginal cost.

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Definitions:

Operations Management

The administration of business practices aimed at ensuring maximum efficiency within a company, focusing on managing processes, materials, and people effectively.

Service Attribute

A feature or characteristic that adds value to a service, influencing customer satisfaction and preferences.

Intangible Product

A product that cannot be touched or physically measured, such as digital goods, services, or intellectual property.

Easy To Store

A characteristic of goods or materials that allows them to be stored without requiring special conditions or large amounts of space, making them convenient for inventory management.