For a Perfectly Competitive Firm, When MC Is Less Than

question 79

Multiple Choice

For a perfectly competitive firm, when MC is less than MR

• A) the producer has an incentive to expand output.
• B) the producer has an incentive to decrease output.
• C) the producer has no incentive to change production.
• D) economic profits must be positive.

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Definitions:

Cheque Bounces

Occurs when a bank refuses to honor a check due to insufficient funds or because the account is closed.

Consumer Transactions

Purchases by individuals of goods or services for personal use and not for resale or for business purposes.

Implied Terms

Provisions not expressly stated in a contract but assumed to exist based on the nature of the agreement and the parties' intentions.

Contractual Claim

A contractual claim arises when one party alleges that another has failed to fulfill their obligations under a contract.