When Marginal Cost Is Greater Than Marginal Revenue, Then a Profit-Maximizing

question 101

Multiple Choice

When marginal cost is greater than marginal revenue, then a profit-maximizing firm must

• A)increase output.
• B)hold output constant.
• C)decrease output.
• D)stop production.
• E)reduce the price it charges.

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Definitions:

Weeks

Units of time that typically consist of seven consecutive days.

CNS

The central nervous system, comprising the brain and spinal cord, responsible for processing and transmitting neural signals in the body.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, responsible for conveying information to and from the central nervous system.

Co-sleeping

The practice where babies and young children sleep close to one or both parents, as opposed to in a separate room.