In the Short Run,a Profit-Maximizing Firm Will Expand Output

question 7

Multiple Choice

In the short run,a profit-maximizing firm will expand output

• A)as long as marginal revenue is greater than marginal cost.
• B)until marginal cost begins to rise.
• C)until marginal revenue equals average variable cost.
• D)until total revenue equals total cost.
• E)as long as marginal cost is greater than marginal revenue.

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Definitions:

Managerial Control Systems

Tools and processes used by managers to regulate organizational activities and ensure the achievement of goals.

Feedforward Controls

A managerial control strategy focusing on regulating inputs (rather than outputs) to ensure that they meet required standards before the work process begins.

Feedback Control

A management technique in which performance is measured and compared against desired outcomes, and adjustments are made as necessary to achieve objectives.

Budget Overruns

Situations where the actual spending on a project or operation exceeds its initially planned or allocated budget.