Suppose a Monopolistically Competitive Firm Can Increase Its Profits by Decreasing

question 90

Multiple Choice

Suppose a monopolistically competitive firm can increase its profits by decreasing its output.Then it must be the case that at the current output:

• A)marginal revenue is less than zero.
• B)price is less than marginal revenue.
• C)marginal revenue is less than marginal cost.
• D)price is less than average total cost.

---

Definitions:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in the air and is absorbed by plants in photosynthesis.

Hormone Levels

The concentration of hormones in the bloodstream, which regulate various processes in the body.

Organic Nutrients

Substances derived from living organisms necessary for growth and health, including vitamins, minerals, and amino acids.

Immune Antibodies

Proteins in the blood that are produced in response to and counteract specific antigens, playing a key role in the immune response.