If a Firm Finds That Its Marginal Cost Is Greater

question 77

Multiple Choice

If a firm finds that its marginal cost is greater than its price,it

• A)Should reduce production.
• B)Is maximizing its profit.
• C)Should increase production.
• D)Is maximizing its total revenue.

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Definitions:

Subcortical Regions

Areas of the brain located below the cerebral cortex, involved in various functions such as emotion, reward, and memory.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions, such as the heartbeat and digestion.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by increasing heart rate, dilating pupils, and other physiological responses.

Parasympathetic Nervous System

A branch of the autonomic nervous system responsible for conserving energy and slowing the heart rate.