If Marginal Revenue Is Less Than Marginal Cost at Every

question 48

Multiple Choice

If marginal revenue is less than marginal cost at every level of output,a profit-maximizing firm should:

• A) produce when the difference between marginal revenue and marginal cost is greatest.
• B) produce when total revenue is maximized.
• C) produce when the difference between total revenue and marginal cost is maximized.
• D) produce when the difference between average revenue and average cost is equal to 1.
• E) not produce any output.

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Definitions:

Secondary Plane

An auxiliary plane, usually oriented perpendicularly or at an angle to the primary plane, used in design and analysis for additional reference.

Primary Plane

A basic geometric plane in a three-dimensional coordinate system, usually referred to as the XY, YZ, or ZX plane.

Chain Line

A line representing the center of a chain's path between two sprockets, important for aligning drivetrain components in machines.

Datum

A reference point, line, or surface on an object used as a basis for geometric calculations, measurements, or to define a coordinate system.