Mark Owns a Cattle Ranch near Hugo,Oklahoma

question 243

Multiple Choice

Mark owns a cattle ranch near Hugo,Oklahoma.Mark is currently producing beef at an output level where marginal revenue exceeds marginal cost.In order to maximize his profit,Mark should

• A) not change his output.
• B) decrease his output.
• C) increase his output.
• D) shut down his ranch.
• E) probably change his output, but more information is needed to determine if he should increase, decrease, or not change it.

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Definitions:

Current Market Price

The price at which an asset or security is traded in the market at the present moment.

Current Liabilities

Obligations or debts of a company that need to be settled with creditors within a twelve-month period.

Twelve Months

A period of one year, often used in financial statements to provide a snapshot of a company's performance.

Descending Order of Liquidity

Ranking assets on a balance sheet from the most liquid (easily converted into cash) to the least liquid.