If a Perfectly Competitive Firm's Marginal Revenue Is Less Than

question 46

Multiple Choice

If a perfectly competitive firm's marginal revenue is less than its marginal cost,the firm

• A)cannot increase its economic profit.
• B)must be making an economic profit.
• C)will decrease its output to increase economic profit.
• D)will increase its output to increase economic profit.
• E)must raise the price.

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Definitions:

Deterrent

A factor or consideration that discourages certain behaviors or actions through the fear of consequences.

Terrorism

The use of violence or threats to intimidate or coerce, especially for political purposes, targeting civilians to achieve goals.

Innocent Citizens

Individuals who are not involved in any criminal activity or wrongdoing but may be affected by such activities or by the criminal justice system.

Social Inequality

The presence of disparate opportunities and benefits for various social roles or standings within a community or society.