A Firm Will Expand the Amount of Output It Produces

question 265

Multiple Choice

A firm will expand the amount of output it produces as long as its

• A) average total revenue exceeds its average total cost.
• B) average total revenue exceeds its average variable cost.
• C) marginal cost exceeds its marginal revenue.
• D) marginal revenue exceeds its marginal cost.

---

Definitions:

Customer Satisfaction

The measure of how products or services provided by a company meet or surpass customer expectations, often a critical indicator of consumer loyalty and product/service quality.

Improving Service Quality

The process of making enhancements to the aspects of service that customers find valuable and important.

Stakeholder Group

A collection of individuals or organizations that have an interest or concern in the decisions and activities of a business.

Primary

Refers to being first in order of importance or the initial stage of a process or activity.