A Competitive Firm Is Currently Producing a Quantity of Output

question 569

Multiple Choice

A competitive firm is currently producing a quantity of output at which marginal revenue exceeds marginal cost. In order to increase its profit, the firm should

• A)increase the price of the good that it produces and sells.
• B)increase its quantity of output.
• C)decrease its total cost.
• D)decrease its average total cost.

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Definitions:

Bipedalism

The ability to walk on two legs, a characteristic mainly observed in humans among primates.

Foramen Magnum

A large opening in the base of the skull through which the spinal cord enters and connects to the brain, indicative of bipedal or quadrupedal locomotion in vertebrates.

Femur

The longest and strongest bone in the human body, extending from the hip to the knee.

Levallois Tools

A technology of stone tool production characterized by the striking of flakes from a prepared core, used by prehistoric humans.