At the Level of Output Where Marginal Revenue Equals Marginal

question 180

Multiple Choice

At the level of output where marginal revenue equals marginal cost,assume that the price of a competitive firm's product is between the firm's average total cost curve and its average variable cost curve.In this case the firm would

• A)decrease output to reduce the costs.
• B)continue to operate in the short run.
• C)shut down.
• D)increase output to increase profit.
• E)continue to operate indefinitely.

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Definitions:

Functional Structure

A method of organizing a company where activities are grouped based on their function, leading to departments like marketing, finance, and HR.

Cross-functional Teams

Groups composed of members from different departments or areas of expertise working together towards a common goal.

Bureaucratic Control

Control accomplished through rules and routines.

Standardized Rules

Established and uniform procedures and criteria that apply to all relevant parties in a given context to ensure consistency and fairness.