Mark Owns a Cattle Ranch near Hugo,Oklahoma

question 243

Multiple Choice

Mark owns a cattle ranch near Hugo,Oklahoma.Mark is currently producing beef at an output level where marginal revenue exceeds marginal cost.In order to maximize his profit,Mark should

• A) not change his output.
• B) decrease his output.
• C) increase his output.
• D) shut down his ranch.
• E) probably change his output, but more information is needed to determine if he should increase, decrease, or not change it.

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Definitions:

Trading Partner

A country or entity with which another country engages in the exchange of goods and services.

European Monetary Union

An agreement among European Union member countries to use a single currency, the euro, and to coordinate their monetary policies.

Highly Productive Economies

Economies that are able to produce a significant amount of goods and services per unit of input.

Specialization

The process of focusing on and becoming an expert in a particular area of work or study, leading to improved efficiency and productivity.