If a Firm Is Producing a Quantity Along the Upward

question 42

Multiple Choice

If a firm is producing a quantity along the upward sloping portion of its marginal cost curve at which marginal cost exceeds price and is earning positive economic profits,it should

• A) continue to produce this quantity.
• B) decrease the quantity produced because doing so will increase profit.
• C) increase the quantity produced because profits are still positive.
• D) wait for the price to increase to its current marginal cost.

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Definitions:

Local Potential

Small changes in membrane potential that are crucial in the propagation of nerve impulses and can lead to an action potential if they reach a certain threshold.

Depolarization Event

A temporary change in a cell's membrane potential, making it more positive, typically associated with the initiation of nerve impulses or muscle contractions.

Stimulus Strength

The intensity of a stimulus, which can influence the magnitude of response in sensory and other physiological systems.

Resting Membrane Potential

The electrical potential difference across the plasma membrane when a cell is in an unstimulated condition.