The Above Figure Shows Some a Firm's Cost Curves and Its

question 266

Multiple Choice

The above figure shows some a firm's cost curves and its marginal revenue curve.
-Based on the figure above,if the firm produces 7 cans per day,the firm ________ maximizing its profit and is ________.

• A) is; incurring an economic loss
• B) is; making zero economic profit
• C) is; making an economic profit
• D) is not; incurring an economic loss
• E) is not; making zero economic profit

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Definitions:

Situational Contingencies

Refers to external or internal factors that influence the effectiveness of management strategies and decision-making processes.

Organizational Design

The process of structuring an organization in a way that facilitates achieving its goals effectively and efficiently.

Formal Authority

The right bestowed upon an individual or unit to make decisions, command obedience, and enforce rules within an organization's hierarchy.

Situational Contingencies

External factors or circumstances that influence the outcome of a decision or action and must be considered in planning and execution.