A Firm Is Currently Producing 100 Units of Output Per

question 17

True/False

A firm is currently producing 100 units of output per day.The manager reports to the owner that producing the 100th unit costs the firm 5 dollars.The firm can sell the 100th unit for 5 dollars.The firm should continue to produce 100 units in order to maximize its profits (or minimize its losses).

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Definitions:

Quick Response

A business strategy aimed at decreasing lead times and enhancing flexibility in operations to meet customer demand efficiently.

Manufacturer Profit

The financial gain a manufacturing company secures from its operations after deducting costs associated with production and distribution.

Short Term

A period of time that is immediate or not far in the future, usually less than a year, often used in reference to planning or financial strategies.

Product Availability

the extent to which a product is obtainable in the desired quantities at the right time and place for customers.