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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Fausto

29 days ago

Wait, wait, wait. Are we sure this isn't a trick question? What if the answer is actually 'E) All of the above'? Gotta keep those options open, people!

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Portia

1 months ago

You know, I was leaning towards A, but now I'm not so sure. Minimum average total cost? That sounds a bit too much like cost-cutting to me. I want to maximize, not minimize!

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Elli

1 months ago

Come on, guys, it's obviously B. Average revenue at the max? That's where the money's at! Profit is all about maximizing those revenues, am I right?

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Kip

3 days ago

I'm not sure, but I think it's C. The difference between costs and revenue should be the greatest for maximum profit.

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Dannette

10 days ago

I agree with you, it's definitely A. Lower costs means higher profits.

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Herschel

16 days ago

I think it's actually A. You want to minimize costs to maximize profits.

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2 months 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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