Once a Firm Has Determined the Quantity of Output It

question 87

Multiple Choice

Once a firm has determined the quantity of output it wishes to sell, the maximum price it can charge for each unit is determined by:

• A)the average cost of making the product.
• B)the demand curve facing the firm.
• C)the marginal cost of making the product.
• D)the firm's marginal revenue curve.

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Definitions:

Plant Sizes

The physical capacity or scale of a manufacturing facility, which can influence production volume, efficiency, and cost.

Per-unit Cost

The cost associated with producing or acquiring one unit of a product.

Factory Size

The physical dimensions or capacity of a manufacturing facility, which may influence its output, efficiency, and employment levels.

Average Costs

The total cost of production divided by the number of goods produced, used to calculate the cost on a per-unit basis.