Suppose Managers at Caterpillar Have Determined the Costs Associated with Producing

Multiple Choice

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.

A) breakeven
B) marginal revenue less than marginal cost
C) profit margin
D) competitive price
E) profit maximizing