If a Firm's Managers Inappropriately Decide to Operate Where Total

question 114

Multiple Choice

If a firm's managers inappropriately decide to operate where total revenue is maximized,they will continue to increase output

• A)as long as marginal revenue exceeds marginal cost
• B)as long as marginal cost exceeds marginal revenue
• C)as long as the total revenue curve is above zero
• D)as long as the marginal revenue curve is above the horizontal axis
• E)until the total revenue curve intersects the total cost curve

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Definitions:

Competitor Strengths

The attributes or capabilities that give an organization an advantage over others in the competitive landscape.

Target Markets

Refers to a specific group of consumers or organizations a business aims to reach with its products or services.

Cost Advantage

This is the benefit a company gains when it can produce a product or provide a service at a lower cost compared to its competitors, often leading to higher profit margins.

Core Competency

Fundamental strengths or unique abilities that a company possesses, providing the foundation for its competitive advantages.