Under What Circumstances Will a Price-Taking Firm Tend to Expand

question 93

Multiple Choice

Under what circumstances will a price-taking firm tend to expand its output?

• A) when its price exceeds average variable cost and its marginal revenue is less than the market price
• B) when its price exceeds average variable cost and its marginal revenue is greater than the market price
• C) when its price exceeds average variable cost and its marginal revenue is positive
• D) when its price exceeds average variable cost and its marginal cost is less than the market price

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Definitions:

Malignant Growths

Abnormal and uncontrolled cell division resulting in tumors that can invade and destroy nearby tissue and spread to other parts of the body.

Highest Incidence

The rate at which a particular disease or condition is most frequently diagnosed within a defined population or area.

Death Rate

The number of deaths in a particular population, scaled to the size of that population, per unit of time, often expressed per 1,000 or 100,000 individuals annually.

Lymphoma

Cancer of the lymphoid tissues, including lymph nodes.