If a Firm Finds That Its Marginal Cost Is Greater

question 11

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.

---

Definitions:

Civil Action

A legal proceeding in which one private party sues another for personal harm or damage, in contrast to a criminal prosecution.

Duty Of Care

The legal obligation to avoid acts or omissions that could foreseeably cause harm to others.

Regulation

Rules or directives made and maintained by an authority to control or govern behavior within a system.

Malicious Prosecution

A tort action based on criminal or quasi-criminal prosecution motivated by ill will toward the accused and lacking reasonable evidential grounds for proceeding.