Companies should only produce and sell units as long as ________.
A) there is customer demand for the product
B) the competition allows it
C) the revenue from an additional unit exceeds the cost of producing it
D) there is a generous supply of low-cost direct materials

Question

Quizplus · Accepted Answer

Companies should only produce and sell units as long as the revenue generated from producing an additional unit exceeds the cost of producing it. This ensures that the company is earning a profit on each unit sold. Customer demand, competition, and low-cost direct materials are important factors to consider, but they do not necessarily determine whether a company should continue producing and selling a product.

Companies Should Only Produce and Sell Units as Long as ________