Suppose,at Its Current Output Level,a Firm's Marginal Profit Is Positive

question 46

Multiple Choice

Suppose,at its current output level,a firm's marginal profit is positive.Therefore,to maximize profit,it should:

• A)decrease output until marginal profit is zero.
• B)increase output because marginal revenue [MR] is less than marginal cost [MC].
• C)increase both its output and its price.
• D)increase output because MR is greater than MC.
• E)increase output until it is producing at full capacity.

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Definitions:

Positive Feedback

A mechanism in which an initial change is amplified by its outcomes, often leading to an enhanced response in a system.

Healthy Individuals

Persons who are in a state of physical, mental, and social well-being, not merely the absence of disease or infirmity.

Positive Feedback

A process where a change in a variable triggers mechanisms that amplify that change.

Negative Feedback

A control system where a trigger produces a contrary effect to sustain an optimal state of the regulated subject.