​If the Current Margin Is Greater Than the Desired Margin,the

question 61

Multiple Choice

​If the current margin is greater than the desired margin,the firm should

• A)​Increase price
• B)Decrease price
• C)Not change the price
• D)​Marginal revenue and marginal cost are both zero

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Definitions:

Administrative Cost

Expenses related to the general operation of a company, including office salaries, utilities, and legal fees, but not including production costs.

Toll-free Telephone Line

A phone number that allows callers to reach businesses without incurring charges, often used for customer support.

Period Cost

Expenses that are not directly tied to the production process and are incurred regardless of the volume of production, such as selling, general, and administrative expenses.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs related to maintenance, utilities, and equipment depreciation.