If a Competitive Firm Is Currently Producing a Level of Output

question 239

Multiple Choice

If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then

• A)a one-unit increase in output will increase the firm's profit.
• B)a one-unit decrease in output will increase the firm's profit.
• C)total revenue exceeds total cost.
• D)total cost exceeds total revenue.

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Definitions:

Assessed

Evaluated or estimated the nature, ability, or quality of someone or something, often in a medical context.

Posterior Hypothalamus

The back part of the hypothalamus that plays a role in thermoregulation, responding to the body's temperature changes.

Vasoconstriction

The narrowing of blood vessels by small muscles in their walls, which decreases blood flow and increases blood pressure.

Vasodilation

The widening of blood vessels, which decreases blood pressure and allows more blood to flow to different parts of the body.