If a Firm Is Producing Where MR < MC

question 49

Multiple Choice

If a firm is producing where MR < MC

• A) the revenue gained by producing one more unit of output exceeds the cost incurred by doing so.
• B) the revenue gained by producing one more unit of output equals the cost incurred by doing so.
• C) the revenue gained by producing one more unit of output is less than the cost incurred by doing so.
• D) the firm is already maximizing profits because revenue is being decreased by more than costs.

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Definitions:

Increases

The act of becoming greater in size, amount, number, or intensity.

Disengagement Theory

The view that aging makes a person’s social sphere increasingly narrow, resulting in role relinquishment, withdrawal, and passivity.

Social Sphere

Describes the domain of human interaction and relationships, encompassing the structures within society that influence social behavior and connectivity.

Withdrawal

A psychological and/or physical syndrome that occurs after cessation of or reduction in intake of a substance that was used regularly.