When Firms Think at the Margin and Make Incremental Adjustments

question 196

Multiple Choice

When firms think at the margin and make incremental adjustments to the level of production, they are naturally led to a level of production where:

• A)average variable cost exceeds marginal cost
• B)costs are minimised
• C)profit is maximised
• D)total cost is less than average revenue

---

Definitions:

Self-actualization

A concept in psychology representing the process of realizing and fulfilling one's own potential and capabilities, often seen as the ultimate goal of personal development.

Environmental Factors

Components outside an organism that can influence its behavior, growth, development, and survival.

Ethnic Identities

Sense of belonging to a specific ethnic group, encompassing various cultural traditions, languages, and social practices.

Disadvantaged Neighborhoods

Areas where residents have fewer resources, opportunities, and access to basic needs compared to more affluent communities, often leading to social and economic challenges.