As a General Rule of Economics, Companies Should Only Produce

question 36

Multiple Choice

As a general rule of economics, companies should only produce and sell units as long as ________.

• A) there is customer demand for the product
• B) there is a relatively small supply of the product when compared to past operating periods
• C) the revenue from an additional unit exceeds the cost of producing it
• D) there is a generous supply of low-cost direct materials

---

Definitions:

Likable

Pertains to possessing qualities that attract liking or affection from others.

Knowledgeable

Being well-informed, educated, or competent in a particular area or subject.

Phenomenon

A fact, occurrence, or circumstance observed or observable, often remarkable or impressive in nature.

Process

Denotes a series of actions or steps taken to achieve a particular end.