If a Perfectly Competitive Firm Is Producing 3,000 Units And

question 35

Multiple Choice

If a perfectly competitive firm is producing 3,000 units and, at the 3,000th unit, the difference between marginal revenue and marginal cost (MR - MC) is zero, which of the following is true?

• A)The firm should decrease production to maximize profit.
• B)The firm is maximizing profit.
• C)The firm should exactly double production to maximize profit.
• D)The firm should increase production to maximize profit.

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Definitions:

Uremia

A condition resulting from the advanced failure of the kidneys to eliminate waste products from the blood.

Specific Gravity

The ratio of the density of a substance to the density of a reference substance, usually water for liquids and solids, and air for gases.

Urochrome

A pigment that gives urine its yellow color, a byproduct of the breakdown of hemoglobin.

Anuria

A condition characterized by a failure of the kidneys to produce urine.