If a Firm Is Producing at a Point Where Marginal

question 109

Multiple Choice

If a firm is producing at a point where marginal revenue is greater than marginal cost, it should

• A) continue producing at the current level.
• B) raise its prices.
• C) lower its prices.
• D) increase the level of production.
• E) decrease the level of production.

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Definitions:

Orbicularis Oculi

A muscle surrounding the eye socket that controls the closing of the eyelid.

Temporalis

A broad, fan-shaped muscle on each side of the head that aids in chewing by elevating the mandible (lower jaw).

Sternocleidomastoid

A muscle in the side of the neck that acts to flex and rotate the head.

Orbicularis Oculi

A muscle around the eye socket that enables the eye to close and squint.