Whenever the Additional Revenue from the Last Unit of Output

question 22

Multiple Choice

Whenever the additional revenue from the last unit of output exceeds the additional cost of that unit,a profit-maximizing firm should

• A)do nothing,the firm is making profits.
• B)produce less in order to increase profits.
• C)produce more in order to increase profits.
• D)think about investing in another industry.

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Definitions:

Enrollment

The process of registering or entering into a membership, course, or program.

Accredited College

An educational institution that has formally met the quality standards set by an official accrediting body, ensuring its offerings are recognized and respected.

Market Conditions

The various external factors affecting the supply, demand, and pricing of products or services in an industry.

Short-Term Contracts

Agreements that have a limited duration, typically lasting for a few days, weeks, or months.