If a Perfectly Competitive Firm Is Producing a Quantity Where

question 205

Multiple Choice

If a perfectly competitive firm is producing a quantity where MC > MR,then profit:

• A)is maximized.
• B)can be increased by increasing production.
• C)can be increased by decreasing production.
• D)can be increased by decreasing the price.

---

Definitions:

Convergent Thinking

Thinking that produces the single best solution to a problem.

Deductive Reasoning

A thought process wherein a verdict is reached through the consistency of numerous claims that are often regarded as correct.

Inductive Reasoning

An intellectual procedure where various propositions, all assumed to be true or generally true, are merged to derive a distinct outcome.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses, while giving disproportionately less consideration to alternative possibilities.