To Maximize Profit, Firms Should Keep Producing as Long as Marginal

question 56

Multiple Choice

To maximize profit, firms should keep producing as long as marginal revenue is:

• A) greater than marginal cost.
• B) equal to marginal cost.
• C) less than marginal cost.
• D) greater than total cost.

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Definitions:

More Than Doubled

"More than doubled" describes a scenario where an amount or value increases by more than 100% of its original value.

CPI

The CPI (Consumer Price Index) is a metric that tracks the average fluctuation in prices that urban consumers experience for a selection of consumer goods and services over time.

Base Year

A specific year against which economic or financial data is measured and compared to track growth, inflation, or other economic indicators.

Cyclical Unemployment

A type of unemployment that relates to the cyclic trends in the economy over time, often tied to changes in the business cycle.