If Profits Depend on Both How Much Is Produced Output)and

question 62

Multiple Choice

If profits depend on both how much is produced output) and the level of quality,then a profit-maximizing firm should choose the levels of output and quality at which

• A)The marginal revenue of output exceeds the marginal cost of output by the largest amount.
• B)The marginal revenue of quality exceeds the marginal cost of quality by the largest amount.
• C)The difference between the addition to total revenue and the addition to total cost of the last units of output and quality is the greatest.
• D)both a and b
• E)none of the above

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Definitions:

Distribution System

the network used to deliver goods or services from producers to consumers, including warehouses, transportation, and retailers.

Seasonal Products

Goods and services that have a high demand or are only available during specific times of the year, often influenced by the season.

Specialized Goods

Products that are designed and produced to meet the specific needs or requirements of a target market or niche.

Location

The specific place or position where something exists or is situated.