A Firm Is Currently Operating Where the MC of the Last

question 156

Multiple Choice

A firm is currently operating where the MC of the last unit produced is $84, and the MR of this unit is $70. What would you advise this firm to do?

• A) Shut down.
• B) Increase output.
• C) Stay at its current output.
• D) Decrease output.
• E) Decrease price.

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Definitions:

Water

A colorless, tasteless, and odorless substance in its pure form, essential for all known forms of life.

Demand Constraint

A demand constraint is a limitation that affects the quantity of a product that can be sold or demanded in the market, potentially due to factors like production capacity or regulatory issues.

Distribution Center

A specialized facility that enables the storage, handling, and distribution of goods to retailers or directly to customers.

San Antonio

A major city in south-central Texas with a rich colonial heritage, known for the Alamo and the River Walk.