A Perfectly Competitive Firm Should Increase Its Level of Production

question 109

Multiple Choice

A perfectly competitive firm should increase its level of production as long as

• A)total revenue is less than total cost.
• B)the total revenue curve is rising.
• C)marginal revenue is greater than marginal cost.
• D)the marginal revenue curve is rising.

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Definitions:

Psychology

The scientific study of the mind and behavior, including aspects of conscious and unconscious experience as well as thought and emotion.

Mind and Behavior

The relationship and interaction between mental processes (thoughts, emotions) and actions or responses.

Scientific Study

The investigation and exploration of phenomena through methodical, empirical, and measurable evidence to establish facts and reach conclusions.

Humanism

A philosophical stance that emphasizes the value and agency of human beings, individually and collectively, and generally prefers critical thinking and evidence over established doctrine or faith.