If the Marginal Revenue for the Next Unit of Output

question 143

Multiple Choice

If the marginal revenue for the next unit of output produced is $50, but the marginal cost is $45, the profit-maximizing firm should

• A) hold production constant.
• B) decrease production.
• C) increase production.
• D) consider stopping production before more losses are incurred.

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Definitions:

Elevation

The height above sea level at which a particular location on Earth's surface stands.

Latitude

A geographic coordinate that specifies the north-south position of a point on the Earth's surface.

Ocean Currents

Large-scale movements of seawater, driven by factors such as wind, salinity, and temperature gradients, playing a key role in climate and marine ecosystems.

Coniferous Forests

are dense, evergreen forests found in regions with long winters and short summers, primarily comprised of cone-bearing trees.