Marginal Cost Pricing Results in the Most Desirable Mix of Goods

question 93

Multiple Choice

Marginal cost pricing results in the most desirable mix of goods and services from the consumer's standpoint because

• A)Firms are forced to produce at the most technically efficient output level.
• B)Economic profits are zero.
• C)Prices are forced down to the lowest possible level.
• D)The prices consumers pay are a reflection of the value of the goods and services given up.

Recognize the contributions and concepts of the Human Relations Movement and its impact on organizational productivity.

Identify the core ideas of contingency management and how they apply to organizational behavior and leadership styles.

Describe Max Weber's concept of bureaucracy and analyze why bureaucracy might be viewed negatively in modern contexts.

Understand the importance of cultural, psychological, and social factors in shaping organizational behavior and management practices.

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Definitions:

Raw Material

The basic substances or components that are processed or used in the manufacturing of goods.

Direct Labor-Hours

The cumulative number of labor hours directly engaged in manufacturing goods or services.

Materials Price Variance

The difference between the actual cost of materials and the standard cost, multiplied by the quantity of materials purchased.

Variable Manufacturing

Costs in manufacturing that change in proportion to the volume of production, such as materials and labor.