If a Competitive Firm Is Currently Producing a Level of Output

question 430

Multiple Choice

If a competitive firm is currently producing a level of output at which profit is not maximized, then it must be true that

• A)marginal revenue exceeds marginal cost.
• B)marginal cost exceeds marginal revenue.
• C)total cost exceeds total revenue.
• D)None of the above is correct.

---

Definitions:

Corrective Action

Steps taken to rectify or eliminate the causes of a detected non-conformity or discrepancy, aiming at preventing recurrence.

Controlling

In management, the process of monitoring performance and making adjustments to achieve desired outcomes.

Desired Results

The specific outcomes or objectives that an individual, group, or organization aims to achieve, serving as targets for planning and performance evaluation.

Formal Training And Education

Structured programs designed to develop skills and knowledge necessary for specific jobs or careers through classes, workshops, and practical exercises.