A Profit-Maximizing Firm Expands Output Until Marginal Revenue Equals the _____

question 96

Multiple Choice

A profit-maximizing firm expands output until marginal revenue equals the _____ of producing the last unit.

• A)marginal cost
• B)average variable cost
• C)average total cost
• D)average fixed cost

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Definitions:

Takt Times

The pace at which products must be completed to meet customer demand, calculated as available production time divided by the quantity of product needed.

High-draw Items

Products or goods that consistently generate high demand from consumers or businesses.

Customer Exposure

The extent to which customers are aware of, have access to, or experience a product or service.

Focused Factory

A facility designed to produce similar products or components.