If a Competitive Firm Continues to Produce When Marginal Revenue

question 11

Multiple Choice

If a competitive firm continues to produce when marginal revenue is less than marginal cost, then each additional unit of output

• A)maximizes profits or minimizes losses.
• B)minimizes losses.
• C)reduces total profit.
• D)increases total profit.
• E)increases both total costs and total revenue.

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Definitions:

Focused

Having or displaying sharp concentration on a particular aim, task, or subject, paying careful attention to details.

Caracole

A half-turn executed by a horse and rider, often seen in classical dressage, or a spiral staircase.

Visual Cortex

The part of the cerebral cortex responsible for processing visual information, located in the occipital lobe of the brain.

Saccadic Eye Movements

Rapid, jerky movements of the eyes that sequentially change the point of fixation, crucial in scanning the visual environment.