When Price Is Greater Than Marginal Cost for a Firm

question 140

Multiple Choice

When price is greater than marginal cost for a firm in a competitive market,

• A) marginal cost must be falling.
• B) the firm must be minimizing its losses.
• C) there are opportunities to increase profit by increasing production.
• D) the firm should decrease output to maximize profit.

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Definitions:

Environmental Factors

External elements including temperature, water, sunlight, and soil that affect living organisms and the functioning of ecosystems.

Fetus Development

The stage of human development in the womb from the ninth week after fertilization until birth, involving significant growth and differentiation of tissues and organs.

Germ Layer

In early embryonic development, one of the three primary layers (ectoderm, mesoderm, and endoderm) that give rise to all tissues and organs of an organism.

Dermis

The layer of skin beneath the epidermis that contains nerve endings, sweat glands, and hair follicles.