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

question 61

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.

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Definitions:

Economic Expectations

Predictions or outlooks regarding economic conditions, such as growth, inflation, and employment, which can influence financial and business decisions.

Discretionary Responsibility

Refers to the voluntary commitment of an organization to contribute to the well-being of its community, environment, and society beyond its legal obligations.

Socially Responsible Corporate Behaviour

Practices and policies adopted by businesses that aim to positively impact society and the environment, beyond what is legally required.

Social Well-Being

The state of experiencing positive relationships and societal connections, contributing to overall health and happiness.