Suppose a Firm in a Competitive Market Notices That Its

question 124

Multiple Choice

Suppose a firm in a competitive market notices that its marginal cost is greater than its price.This means that:

• A)there are opportunities to increase profit or reduce losses by increasing production
• B)there are opportunities to increase profit or reduce losses by decreasing production
• C)marginal cost must be falling
• D)the firm should increase its marketing budget

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Definitions:

Egg Collection

The practice of gathering eggs from the wild, often for scientific research, conservation, or as part of a collection hobby.

Carrying Capacity

The largest number of individuals of a species that an environment can support indefinitely, based on the availability of essential resources like food, habitat, and water.

Predation

A biological interaction where one organism, the predator, kills and eats another organism, its prey, as a means of obtaining energy.

Biotic Potential

The highest possible rate of reproduction for a living being when the environment is most favorable.