When Management Analyzes Whether to Move Production to Another Country

question 98

Multiple Choice

When management analyzes whether to move production to another country or to keep the production located where it currently is, which of the following management responsibilities is being performed?

• A)Adjusting
• B)Controlling
• C)Planning
• D)Directing

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Definitions:

Profit-Maximizing Quantity

The quantity of output at which a firm's profit is at its maximum, where marginal cost equals marginal revenue.

Market Price

The price at which a product or service is traded in the open market.

ATC

Average Total Cost, which is the total cost per unit of output produced, calculated by dividing the total cost by the quantity of output.

MR

Marginal Revenue, which is the additional income from selling one more unit of a good or service.