If Marginal Cost Equals Price,then _____ Is at a Maximum

question 26

Multiple Choice

If marginal cost equals price,then _____ is at a maximum.

• A) Total cost
• B) Profit
• C) Total revenue
• D) Marginal cost

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Definitions:

Indirect Materials

These are materials used in the production process that are not directly traceable to the finished product.

Production

The process of creating goods and services through the combination of labor, materials, and technology.

Direct Materials Cost

The cost of raw materials that can be directly traced to the production of goods, considered a variable cost in manufacturing.

Inventories

Assets held for sale, or in the process of being produced for sale, or to be used in the production process.