What Might Cause a Firm to Want to Increase Production

question 23

Multiple Choice

What might cause a firm to want to increase production past the point where additional revenues offset additional costs?

• A)The firm is enjoying the benefits of the learning curve
• B)Future production costs will be higher
• C)Managers are being rewarded on the basis of short-run profits
• D)The firm relies on direct growth incentives
• E)The firm wants to violate the rule of equating marginal revenue equal to marginal cost

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Definitions:

Redundancies

Situations where an employer reduces their workforce because a job or jobs are no longer needed.

Passive Voice

A sentence construction where the subject of the sentence is acted upon rather than performing the action.

Active Voice

A grammatical voice where the subject of the sentence performs the action expressed by the verb, making the writing more direct and clear.

Voir Dire

A proceeding in which attorneys for the plaintiff and the defendant ask prospective jurors questions to determine whether any juror is biased or has any connection with a party to the action or with a prospective witness.