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A Profit-Maximizing Firm in a Competitive Market Will Decrease Production

question 46

True/False

A profit-maximizing firm in a competitive market will decrease production when marginal cost exceeds average revenue.


Definitions:

Technology

The use of scientific understanding for pragmatic objectives, particularly within the industrial sector.

Marginal Productivity

The additional output that is produced by adding one more unit of a specific factor of production, while other factors are held constant.

Robot Hours

Units of measurement indicating the time robots are in operation or engaged in productive tasks.

Average Product

The amount of production divided by the input units, indicating the efficiency of production per input unit.

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