To Maximize Its Profit,in the Short Run a Perfectly Competitive

question 154

Multiple Choice

To maximize its profit,in the short run a perfectly competitive firm decides

• A) what price to charge for its product.
• B) what quantity of output to produce.
• C) whether to exit the market.
• D) whether to increase the size of its plant.
• E) how much advertising it should undertake.

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Definitions:

Manufacturing Cycle Time

The total time taken from the start of production to the completion of the final product, including all processing and waiting times.

JIT Systems

Just-in-time production strategies that aim to reduce in-process inventory and carrying costs by producing only what is needed, when it's needed.

TPS

An acronym for Toyota Production System, a methodology that aims to increase efficiency by eliminating waste and improving production processes.