Table 14-11 Suppose That a Firm in a Competitive Market Faces the Faces

question 431

Multiple Choice

Table 14-11
Suppose that a firm in a competitive market faces the following prices and costs:
-Refer to Table 14-11. If the firm is producing 3 units of output, it should produce

• A)more units of output because its marginal revenue is greater than its marginal cost.
• B)fewer units of output because its marginal revenue is less than its marginal cost.
• C)more units of output because its marginal revenue is less than its marginal cost.
• D)fewer units of output because its marginal revenue is greater than its marginal cost.

---

Definitions:

Foreign Labor

Workers from other countries who are employed in a nation different from their own, often under temporary or permanent migration arrangements.

Foreign Production

The manufacturing of goods and services outside the company's home country, often to take advantage of lower costs or specialized skills.

Global Commodity Chain

A worldwide network of labor and production processes whose end result is a finished commodity.

Production Processes

The series of actions, methods, and operations involved in the manufacturing of goods, including the transformation of raw materials into finished products.