If for a Firm MRP > MFC, Then the Firm

question 90

Multiple Choice

If for a firm MRP > MFC, then the firm

• A)is maximizing profits and should continue producing its current output.
• B)is minimizing factor costs and therefore is maximizing profits.
• C)should produce more output by increasing the quantity of factors employed.
• D)should produce less output by decreasing the quantity of factors employed.

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Definitions:

Future Benefits

Anticipated advantages or positive outcomes expected to be received in the future.