For a Firm to Be Economically Efficient from Society's Point

question 222

Multiple Choice

For a firm to be economically efficient from society's point of view, it should produce to the point at which

• A) marginal cost equals marginal revenue.
• B) marginal cost equals average total cost.
• C) marginal cost equals price.
• D) average total cost equals price.

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Definitions:

Medium-term Cost Adjustment

Adjustments made to manage costs that are expected to have an impact over the medium term, typically spanning from a year to a few years.

Exit Incentives

Benefits offered to employees to encourage voluntary departure, typically used in workforce reduction strategies.

Reducing Overtime

It entails strategies or policies aimed at decreasing the amount of time employees work beyond their standard scheduled hours, often to lower costs or maintain work-life balance.

Work Redesign

The process of altering jobs and work processes to improve organizational performance and employee satisfaction.