Firms May Reasonably Make a Decision to Cut Prices If

question 30

Multiple Choice

Firms may reasonably make a decision to cut prices if

• A)profits are not likely to decline.
• B)marginal profit is not negative.
• C)MR > MC.
• D)All of the above are correct.

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Definitions:

Business Operations

All the activities involved in the day-to-day running of a business that directly relate to its producing and delivering its products or services.