In the Long Run,when Will a Profit-Maximizing Firm Choose to Exit

question 184

Multiple Choice

In the long run,when will a profit-maximizing firm choose to exit a market

• A)when average fixed cost is falling
• B)when variable costs exceed sunk costs
• C)when marginal cost exceeds marginal revenue at the current level of production
• D)when total revenue is less than total cost

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Definitions:

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer, aiming to reduce costs and improve efficiency.

Purchasing

The act of acquiring goods or services, often for business purposes, to fulfill the needs of an organization or individual.

Procurement

The process of obtaining goods, services, or works from an external source, often via a tendering or competitive bidding process.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.