CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 89 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 89
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

A firm will maximize profits by producing at that level of output where

Aaverage total cost is at a minimum

Baverage revenue is at a maximum

Cthe difference between total costs and total revenue is greatest

Dthe difference between average revenue and average variable cost is greatest

Show Suggested Answer

Suggested Answer: A

by Alonzo at May 30, 2024, 06:39 PM

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My

6 days ago

Ah, the age-old question of profit maximization. Let's see, I think option C is the way to go - gotta maximize that sweet, sweet difference between costs and revenue!

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Shawn

13 days ago

But what about option B) average revenue is at a maximum? Shouldn't we focus on increasing revenue instead?

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Cory

16 days ago

I agree with Fidelia, because minimizing costs will help maximize profits.

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Fidelia

17 days ago

I think the answer is A) average total cost is at a minimum.

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