If Marginal Cost Is Increasing and Is Below Marginal Revenue

question 45

Multiple Choice

If marginal cost is increasing and is below marginal revenue, a profit- maximising firm should:

• A) increase output
• B) shut down
• C) increase price
• D) decrease output

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Definitions:

Heart Disease

A range of conditions that affect the heart, including coronary artery disease, arrhythmias, heart failure, and others.

Thromboplastin

A plasma protein that plays a key role in the blood clotting process.

Clotting

The process by which blood changes from a liquid to a solid state, forming a clot to prevent excessive bleeding when vessels are injured.

Capillary Bed

A network of small blood vessels known as capillaries, which facilitate the exchange of oxygen, nutrients, and waste materials between the blood and tissues.