A Firm Is Currently Operating Where the MC of the Last

question 18

Multiple Choice

A firm is currently operating where the MC of the last unit produced = $64, and the MR of this unit = $70. What would you advise this firm to do?

• A) Shut down.
• B) Increase output.
• C) Stay at current output.
• D) Decrease output.

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Definitions:

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization, focusing on converting materials and labor into goods and services as efficiently as possible.

Scheduling Chart

A visual tool used to plan and display the timeline of tasks and activities in a project or process.

Continuous Process

An ongoing operation or production method without interruption or end points.

Product Quality

The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.