To Maximize Profits,a Perfectly Competitive Firm Should Increase Output

question 305

Multiple Choice

To maximize profits,a perfectly competitive firm should increase output

• A)until price is greater than average total cost.
• B)until price is equal to marginal cost.
• C)until total cost is less than total revenue.
• D)until marginal cost is equal to average variable cost.
• E)until marginal revenue is equal to total cost.

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Definitions:

Finished Products

Goods that have completed the manufacturing process but have not yet been sold or distributed to the end user.

JIT Action

An initiative or measure taken to implement Just-In-Time production, aiming to reduce waste by receiving goods only as they are needed in the production process.

Inventory

Inventory is the quantity of goods that a business has on hand, including materials, components, and finished products.

Pull System

A production strategy where processes are initiated by actual demand, aimed at reducing waste in the production process.