Which of the Following Must Be True If a Price-Searcher

question 57

Multiple Choice

Which of the following must be true if a price-searcher firm is operating at the profit-maximizing output rate?

• A) The marginal cost of producing the last unit is greater than the marginal revenue derived from its sale.
• B) The marginal cost of producing the last unit is no greater than the marginal revenue derived from its sale.
• C) The total cost of producing all units is no greater than the total revenue derived from the sale of the units.
• D) The total cost of producing all units is less than the total revenue derived from the sale of the units.

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Definitions:

Production Budget

An estimation of the total costs to produce a set amount of goods over a specific period.

Units

In accounting and manufacturing, this refers to the individual countable items or quantities of a product or service that a company produces or transacts in.

Inventory

The total value of a company's goods and materials held for sale or used in production.

Budgeted Production

The planned level of production output, determined based on forecasted sales and inventory requirements, to guide manufacturing processes.