To Maximize Profits, a Competitive Firm Increases Its Output as Long

question 142

Multiple Choice

To maximize profits, a competitive firm increases its output as long as

• A)total revenue is greater than total cost.
• B)total revenue is less than total cost.
• C)marginal revenue is less than marginal cost.
• D)marginal revenue is greater than marginal cost.
• E)marginal revenue is positive.

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Definitions:

Subsidy Benefit

Government-provided support to aid businesses, individuals, or sectors of the economy through financial help.

Elasticities

Measures in economics that demonstrate how the quantity demanded or supplied of a good responds to changes in price or other factors.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization.

Beef Prices

The market value or cost of beef at a given time, influenced by factors like supply and demand.