Jeremy Johnson Is the Owner of a Small Firm That

question 19

Multiple Choice

Jeremy Johnson is the owner of a small firm that manufactures customized oil-drilling equipment.The company's manufacturing facility is organized into a fabrication section,a heat treatment section,a welding section,and a quality control section.This type of plant layout is referred to as a(n) ____ layout.

• A) product
• B) pooled manufacturing
• C) assembly-line
• D) group manufacturing
• E) process

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Definitions:

Competitive Industry

An industry where numerous producers are in competition with one another, leading to a situation where no single firm has significant market power, and prices are determined by overall supply and demand.

Marginal Revenue

Marginal Revenue is the increase in revenue resulting from the sale of one additional unit of a product or service.

Marginal Cost

The financial impact of manufacturing an additional unit of a product or service.

Profit Maximization

A company's objective to make the most amount of profit possible with its current resources and market conditions.