If Price Is Greater Than Marginal Cost,a Perfectly Competitive Firm

question 96

Multiple Choice

If price is greater than marginal cost,a perfectly competitive firm should increase output because

• A)Marginal costs are increasing.
• B)Additional units of output will add to the firm's profits (or reduce losses).
• C)The price it receives for its product is increasing.
• D)Total revenues would increase.

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Definitions:

Effective Listening

The skill of fully focusing on and understanding the speaker's message, involving both hearing and interpreting the information.

Empathetic Listening

The skill of understanding and sharing the feelings of another person by fully concentrating on their words and emotional expressions.

Clarifying

The process of making a statement or situation less confused and more comprehensible.

70/30 Principle

A guideline suggesting that effective communication should involve roughly 70% listening and 30% talking.