The U.S.government Is

question 205

Multiple Choice

The U.S.government is:

• A) not a business market segment
• B) the world's largest single customer
• C) an organization accounting for over 50 percent of the U.S.gross national product
• D) mainly a military equipment purchaser
• E) using one centralized purchasing office for the entire government

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Definitions:

Shut-down Point

The level of operation at which a firm's total revenue is equal to its total variable costs, below which it is more beneficial for a firm to cease production.

Average Variable Cost

The variable cost (cost that changes with production volume) divided by the quantity of output produced.

Profit-maximizing

Refers to the process by which a company determines the price and output level that returns the greatest profit.

MR = MC

An economic principle stating that optimal production level is reached when marginal revenue equals marginal cost.