Bennie's Top Factory Produces 1,000 Tops Per Day for a Total

question 214

Multiple Choice

Bennie's Top Factory produces 1,000 tops per day for a total daily revenue of $2,000.Bennie's total costs would rise by $2 if it produced the 1,001ˢᵗ top.Because marginal revenue and price are equal and constant,

• A)profit would rise by $2 if Bennie produced one additional top
• B)profit would fall by $2 if Bennie produced one additional top
• C)profit would not change if Bennie produced one additional top
• D)profit will fall by some unknown amount if Bennie produced one additional top
• E)the total cost curve must have shifted to the left

---

Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values from the mean.

Benchmarking

The process of comparing key points within your business with comparable points in another external entity.

External Entity

An organization, group, or individual that exists outside of the company and interacts with the business through transactions, partnerships, or other forms of engagement.

Total Quality Management

A methodology that emphasizes the importance of organizational culture in achieving long-term success through customer satisfaction and continuous improvement.