A Company Is Producing 15,000 Units

question 31

Multiple Choice

A company is producing 15,000 units.At this output level,marginal revenue is $22 and the marginal cost is $18.The firm sells each unit for $48 and average total cost is $40.What can we conclude from this information?

• A)The company is making a loss
• B)The company needs to cut production
• C)The company needs to increase production
• D)Not enough information is provided

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Definitions:

High Degree of Autonomy

A work condition where employees have significant control and discretion over how they perform their tasks.

Work Processes

The series of activities and tasks that are carried out in order to achieve a specific outcome within an organization.

Functional Departments

Divisions within an organization, each specialized in certain functions such as marketing, finance, or human resources, to ensure operational efficiency.

Functional Structure

Is an organizational design that groups employees based on their functional roles or specializations, such as marketing or finance.