A Profit-Maximizing Firm Will Continue to Expand Output

question 181

Multiple Choice

A profit-maximizing firm will continue to expand output

• A) as long as the revenues from the production and sale of an additional unit exceeds the average costs of the unit.
• B) until the average cost of producing the good or service is at a minimum.
• C) as long as the revenues from the production and sale of an additional unit exceeds the marginal cost of the unit.
• D) until the marginal cost of producing a good or service is at a minimum.

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Definitions:

Decision-Making Abilities

The capability to select between two or more alternatives to achieve the best outcome in a given situation.

Gender

Social and cultural distinctions associated with being male or female, as opposed to biological differences.

Biological Sex

The physical characteristics, such as reproductive and sexual anatomy, chromosomes, and hormone levels, that are used to classify individuals as male, female, or intersex at birth.

Reproductive Distinctions

The inherent or socially constructed differences in reproductive roles and functions among sexes and genders.