A Profit-Maximizing Firm That Is Operating in the Short Run

question 98

Multiple Choice

A profit-maximizing firm that is operating in the short run will sell an additional unit of output as long as:

• A) as doing so reduces the firm's per-unit costs.
• B) doing so reduces the firm's marginal costs.
• C) doing so adds more to revenue than it adds to cost.
• D) there is additional plant capacity with which to produce.

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Definitions:

Work Centres

Specific locations within a production facility where particular processes or operations are carried out.

Sequencing Rule

A set of guidelines or methods used to determine the order in which tasks or operations should be performed to optimize efficiency and outcomes in production or project management.

Critical Ratio

A metric used in inventory management and project scheduling that indicates the priority of a task based on its urgency and importance.

Relative Priority

The ranking or importance of tasks or projects in comparison to each other based on criteria such as urgency or impact.