If for a Firm MRP > MFC, Then the Firm

question 90

Multiple Choice

If for a firm MRP > MFC, then the firm

• A)is maximizing profits and should continue producing its current output.
• B)is minimizing factor costs and therefore is maximizing profits.
• C)should produce more output by increasing the quantity of factors employed.
• D)should produce less output by decreasing the quantity of factors employed.

---

Definitions:

Clamp-type

A fastening device or mechanism that holds objects tightly together to prevent movement or separation, utilizing a clamping action.

Long-stroke

Describes an engine or piston movement with a longer distance traveled within the cylinder, affecting power and efficiency.

Brake Drums

Components of a drum brake system which rotate with the wheel and where the brake shoes press against to stop the vehicle.

Reconditioning

The process of repairing, restoring, or otherwise returning a used or worn product to a good, usable condition, often involving replacing parts and a thorough cleaning.