If a Firm's Marginal Revenue from Its 100th Unit of Output

question 31

Multiple Choice

If a firm's marginal revenue from its 100th unit of output is $50 and the marginal cost from its 100th unit of output is $45, then in the short run this firm should:

• A) increase its plant size.
• B) change its technology.
• C) produce more than 99 units of output.
• D) produce less than 100 units of output.
• E) shut down.

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Definitions:

Liquidation Schedule

A plan or timetable for selling off assets, typically used in the context of dissolving a business or paying off debt.

Bankruptcy Estate

All legal and equitable interests of the debtor in property at the time of the bankruptcy filing, as defined by bankruptcy law.

Prepetition Assets

Assets that a debtor possesses before filing for bankruptcy protection, which are generally subject to evaluation and potentially used to satisfy creditor claims in the bankruptcy process.

Federal Bankruptcy Exemptions

Legal provisions that allow individuals declaring bankruptcy to retain a portion of their property from creditors.