Suppose a Perfectly Competitive Firm Can Increase Its Profits by Increasing

question 284

Essay

Suppose a perfectly competitive firm can increase its profits by increasing its output.Then it must be true that the firm's:
A.marginal revenue exceeds its marginal cost.
B.price exceeds its average variable cost but is less than average total cost.
C.marginal cost exceeds its marginal revenue.
D.price exceeds its marginal revenue.

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Definitions:

Personal Choice

The freedom to make decisions independently, based on personal preference or belief without external coercion or limitation.

Deviant Behavior

Actions or conduct that diverge from societal norms and expectations, often eliciting negative reactions from others.

Positivist Approach

An approach in sociology that beliefs social phenomena should be studied through observable, scientific methods to identify causal relationships and laws.

Constructionist Approach

A theoretical perspective that emphasizes the role of social constructs and interactions in the creation of reality and societal norms.