Scenario 14-2 Assume a Certain Firm Is Producing Q = 1,000 Units

question 241

Multiple Choice

Scenario 14-2
Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $20 and its average total cost equals $25. The firm sells its output for $30 per unit.
-Refer to Scenario 14-2. To maximize its profit, the firm should

• A)increase its output.
• B)continue to produce 1,000 units.
• C)decrease its output but continue to produce.
• D)shut down.

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Definitions:

Stakeholders' Expectations

The anticipations and demands that stakeholders (such as shareholders, employees, customers, and communities) have from an organization.

CSR

Corporate Social Responsibility, a business model where companies integrate social and environmental concerns in their operations and interactions with stakeholders.

Conscious Marketing

A marketing approach that prioritizes ethical considerations, societal well-being, and environmental sustainability alongside business goals.

Ecosystem View

An ecosystem view is an approach that considers all elements of an environment and how they interact, often used in business to understand the complex interrelations in a market.