When Price Is Greater Than Marginal Revenue, and Marginal Revenue

question 164

Multiple Choice

When price is greater than marginal revenue, and marginal revenue is greater than marginal cost, a profit- maximising firm should:

• A) not change output or price, as marginal revenue is greater than marginal cost and profits are being made
• B) increase price and decrease the output level
• C) decrease both the price and the output level
• D) decrease price and increase the output level

Grasp the understanding of demand functions and how price influences demand.

Comprehend how consumer's surplus changes with price changes.

Understand the concept of reservation price and income effects on consumer choice.

Learn how utility optimization impacts consumer choices under budget constraints.

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Definitions:

DNA Sequence

The precise order of nucleotides within a DNA molecule, critical for encoding genetic information.

Chromosome

A long DNA molecule with associated proteins that help to package and manage the DNA, forming the structural foundation of genes and genetic information in organisms.

Fate Maps

Diagrams or maps that predict or trace the developmental fate of cells in embryos to show where they will end up and what they will become in the mature organism.

Morphogen Genes

Specific sequences of DNA that determine the relationship of structures during development; often expressed in a gradient across the embryo.