When Marginal Revenue Is Greater Than Marginal Cost, Each Additional

question 71

True/False

When marginal revenue is greater than marginal cost, each additional unit sold generates a positive profit and adds to overall profits.

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Definitions:

Economic Activity

The actions that involve the production, distribution, and consumption of goods and services in an economy.

Tariffs

Taxes imposed on imported goods and services, which are typically used by governments to protect domestic industries, raise revenue, or exert political leverage.

Trade Restrictions

Regulations or policies that countries adopt to limit the import and export of goods and services, often to protect domestic industries.

Secondary Effects

Unintended consequences of economic actions, which may manifest in areas not directly targeted by the initial action.