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:

Continual Adjustments

An ongoing process of making small changes or modifications to improve or maintain performance in response to changing conditions or feedback.

Unfreezing

The process within change management that involves overcoming inertia and dismantling the existing "mindset" to overcome resistance to change.

Changing

The process or act of making something different, often in the context of improvement or adaptation.

Refreezing

The process of stabilizing a group or organization after a change has occurred, ensuring that the changes made are permanent and integrated into the norm.