Which of the Following Statements Is (Are) TRUE

question 108

Multiple Choice

Which of the following statements is (are) TRUE?
I. A firm with market power maximizes profit by producing so that P = MC or MR = MC.
II. If marginal revenue exceeds marginal cost, the firm should expand output to increase profits.
III. If a firm has no costs of production, it should continue producing until marginal revenue falls to zero.

• A) I
• B) II and III
• C) II
• D) I, II, and III

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Definitions:

Concurrent Criterion Validity

How well a test outcome is consistent with a criterion that exists in the present.

Test Outcome

The result obtained from conducting a specific test or experiment, which determines whether the initial hypothesis is supported or refuted.

Criterion

Criterion refers to the standard or rule by which something is judged or evaluated, often used in the context of setting benchmarks or goals.

Present

To show or display something, often data or findings, in a structured manner.