When Price Is Greater Than Marginal Cost for a Firm

question 140

Multiple Choice

When price is greater than marginal cost for a firm in a competitive market,

• A) marginal cost must be falling.
• B) the firm must be minimizing its losses.
• C) there are opportunities to increase profit by increasing production.
• D) the firm should decrease output to maximize profit.

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Definitions:

Segregation

The act of separating individuals or groups apart from each other based on different criteria, such as race, gender, or socio-economic status.

Autonomic Nervous System (ANS)

A component of the peripheral nervous system that controls bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Illness

A condition of poor health perceived or experienced by an individual as an invasion, disorder, or loss of function in one's body or mind.

Daily Activities

Routine actions or behaviors individuals engage in on a day-to-day basis, including eating, working, and sleeping.