If Colgate-Palmolive Wants to Maximize Profit on Its Toothpaste, It

question 20

Multiple Choice

If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where

• A) total costs and total revenues are equal.
• B) marginal revenue is at its highest level.
• C) marginal revenue exceeds marginal cost.
• D) marginal revenue equals marginal cost.
• E) demand is most elastic.

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Definitions:

Sales Budget

A financial plan that estimates future sales, often used to guide marketing and sales strategies.

Forecasted Economic

Projections or estimates about future economic conditions, such as growth rates, inflation, or market trends, based on current data and analysis.

Merchandiser's Budget

A financial plan used by a retail company to manage inventory, purchase goods, and forecast sales for planning profits and cash flow.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor costs.