A Firm Would Find It Profitable to Increase Its Production

question 9

Multiple Choice

A firm would find it profitable to increase its production when

• A) its marginal revenue exceeds its marginal cost.
• B) its fixed costs decrease.
• C) higher resource costs raise its marginal costs.
• D) new competitors reduce the demand for the firm's product.

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Definitions:

Accounts Receivable

Money due to a company from its clients for products or services that have been delivered or used but not yet paid for.