When the Marginal Cost of a Price-Taker Firm Is More

question 89

Multiple Choice

When the marginal cost of a price-taker firm is more than the market price of its product, the firm should

• A) expand output.
• B) reduce output.
• C) maintain output.
• D) charge more than the market price.

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Definitions:

Warehouse

A large building where raw materials or manufactured goods may be stored before their distribution for sale.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, leading to unintended harm to others.

Municipal Dump

A designated area operated by a local government where waste and trash are disposed of and sometimes processed or recycled.

Old Bicycle

This term simply describes a bicycle that is not new, possibly indicating it is used, vintage, or not in its prime condition.