A Firm Should _____ Output Whenever MR Exceeds MC Because

question 95

Multiple Choice

A firm should _____ output whenever MR exceeds MC because _____.

• A) reduce; revenues will rise by more than costs, increasing the firm's profit
• B) reduce; total revenues exceed total costs
• C) expand; revenues will rise by more than costs, increasing the firm's profit
• D) not change; selling more output will increase marginal revenue by less than marginal cost

---

Definitions:

Activation

The stimulation or initiation of activity in an organism, cell, or molecular system, often referring to the triggering of specific processes or responses.

Primary Drives

Innate biological necessities like hunger and thirst that drive behavior and are essential for survival.

Motives

The internal drives that propel individuals to take action towards achieving goals.

Primary Drives

Basic physiological needs such as hunger, thirst, and sexual desire that motivate behavior.