Firms That Face Capacity Constraints Can Increase Output Only Up

question 21

Multiple Choice

Firms that face capacity constraints can increase output only up to the capacity,but no further.Therefore,firms​

• A)​Should price to capacity as long as MR > MC
• B)Should price to capacity as long as MR = MC
• C)Should price to capacity as long as MR < MC
• D)​Should not take capacity into consideration in pricing decisions

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Definitions:

Range

The difference between the highest and lowest values in a data set, or the extent of variability.

Depth

The complexity or thoroughness involved in the examination or analysis of a subject, object, or concept.

Generalizability

The extent to which findings from a study can be applied or extended to broader contexts or populations outside of the initial study setting.

Relevance

The degree to which something is related or useful to the matter at hand.