A Firm Should Continue Producing Until

question 162

Multiple Choice

A firm should continue producing until

• A) the cost of producing the output equals the revenues obtainable from selling the output.
• B) the cost of increasing output by one more unit equals the revenues obtainable from selling the extra unit.
• C) average costs are at a minimum.
• D) the average cost when another unit is produced equals the average revenue obtainable from selling the extra unit.

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Definitions:

R Squared

A statistical measure that represents the proportion of the variance for a dependent variable that's predicted from an independent variable or variables in a regression model.

Regression

A statistical method used to determine the relationship between a dependent variable and one or more independent variables.

Correlation

A statistical measure that describes the extent to which two variables change together, and how strong the relationship is between them.

NHL Team

A professional ice hockey team that competes in the National Hockey League, a major league in North America.