Only Undertaking an Activity When It Adds More to Revenue

question 169

Multiple Choice

Only undertaking an activity when it adds more to revenue than to cost is the decision rule a profit-maximizing firm will use when deciding upon

• A) the level of output to produce.
• B) the amount of advertising to undertake.
• C) the level of product quality (for example, how many years it is designed to last).
• D) all of the above.

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Definitions:

Future

A time period that is yet to come and the events or conditions that will happen in that time.

Jean-Baptiste Lamarck

An early 19th-century French biologist known for his theory of inheritance of acquired characteristics, a precursor to Darwin’s theory of evolution.

Spontaneously

Occurring without apparent external cause or intervention, often used to describe natural phenomena or processes.

Organisms Adapt

The process by which living things change over time in response to their environment to improve their chances of survival.