If Marginal Revenue Exceeds Marginal Cost, to Increase Its Profit

question 216

Multiple Choice

If marginal revenue exceeds marginal cost, to increase its profit the firm will

• A) decrease its output.
• B) increase its output.
• C) keep its output the same.
• D) shut down.

Understand the role and objectives of voluntary and legally required public protection programs.

Understand the administration and importance of benefits compliance.

Grasp the emerging trends and management approaches in employee benefits.

Understand the various aspects and considerations in setting up vacation programs for employees.

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Definitions:

Held Up

Delayed or stopped by something or someone, causing a pause in progress or movement.

Average Variable Costs

The total variable costs (costs that change with output level) divided by the quantity of output produced.

Average Costs

The total cost of production divided by the number of goods produced, a measure of cost efficiency.

Shutting-Down

A short-term decision by a firm to cease operations while it still has the option to resume in the future, often due to unfavorable market conditions.