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

Understand the concept and practical applications of evidence-based management.

Recognize the contingency approach to management and its adaptability according to individual and situational needs.

Identify the role of evidence-based management in decision-making processes.

Understand the importance of adopting international quality standards and continuous improvement in operations.

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Definitions:

Gardner's Theory

Refers to Howard Gardner's theory of multiple intelligences, which proposes that people have different kinds of intelligences, such as linguistic, logical-mathematical, and musical, among others.

Linguistic

Pertains to language, including its structure, use, and the study of how words and their construction create meaning.

Bodily-Kinesthetic

Pertains to the capacity to use one's body in highly differentiated and skilled ways, for expressive as well as goal-directed purposes.

Romantic

Pertaining to, characterized by, or given to the expression of love and affection.