If, as a Firm Increases Its Rate of Output, Total

question 60

Multiple Choice

If, as a firm increases its rate of output, total cost increases as well,

• A)profit cannot be maximized
• B)revenue cannot be maximized
• C)cost cannot be minimized
• D)marginal cost is increasing
• E)marginal cost is positive

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Definitions:

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Mortgage Notes Payable

A liability represented by a legal document indicating the amount owed on a mortgage, including terms for repayment and interest rates.

Financing Activity

Transactions related to raising capital and repaying investors, including issuing equity, taking out loans, and distributing dividends.

Cash Receipts

The total amount of money received by a business during a specific period, including cash sales, collected receivables, and any other cash inflows.