If the Firm Is Producing at a Quantity of Output

question 26

Multiple Choice

If the firm is producing at a quantity of output where marginal revenue exceeds marginal cost, then,

• A) the firm's perceived demand will shift to the left.
• B) the firm should keep expanding production.
• C) each marginal unit adds profit by bringing in less revenue than its cost.
• D) the firm is now earning zero for profit.

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Definitions:

Darwinian Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring.

Evolutionary Change

The process through which genetic variations accumulate over generations, leading to changes in the traits and behaviors of organisms.

Hereditarily

Hereditarily pertains to the genetic transmission of traits, diseases, or characteristics from parents to offspring.

Artificial Selection

The process by which humans breed plants and animals for particular genetic characteristics.