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:

Wild Cats

Undomesticated felines that live in a variety of habitats around the world.

Antelopes

A diverse group of hoofed mammals belonging to the Bovidae family, known for their speed and agility.

Rodents

A large group of mammals characterized by a single pair of continuously growing incisors in each of the upper and lower jaws, including rats, mice, and squirrels.

Freshwater Fish

Fish species that live in rivers, lakes, and streams, differing from those in marine environments in terms of habitat and salinity tolerance.