Question

What is the formula used to compute the units to be produced?

a. Units produced = Units sold
b. Units produced = Units sold + Units in beginning inventory + Units in ending inventory
c. Units produced = Units sold + Units in beginning inventory - Units in ending inventory
d. Units Produced = Units sold - Units in beginning inventory + Units in ending inventory

Answer 1

Option (d), The formula used to compute the units to be produced in a perfectly competitive firm is Units Produced = Units sold - Units in beginning inventory + Units in ending inventory.

Step-by-step explanation:

The formula used to compute the units to be produced in a perfectly competitive firm is option d. Units Produced = Units sold - Units in beginning inventory + Units in ending inventory.

This formula takes into account the units sold, as well as the units in the beginning and ending inventory, to determine the total units that need to be produced by the firm.