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:

Communicating

The process of conveying information or expressing thoughts and feelings through verbal or non-verbal means.

Nature of the Business

The fundamental characteristics and operations that define a company's core activities and purposes.

Poor Communication

Refers to the ineffective transfer or exchange of information, ideas, or feelings between individuals or groups, often leading to misunderstandings or conflicts.

Monetarily

Related to money or financial transactions.