Table 14-3 -Refer to Table 14-3.If the Firm Finds That Its Marginal

question 226

Multiple Choice

Table 14-3

-Refer to Table 14-3.If the firm finds that its marginal cost is $16,what should it do

• A)It should increase production to maximize profit.
• B)It should increase the price of the product to maximize profit.
• C)It should increase the marginal revenue of the product to maximize profit.
• D)It should advertise to attract additional buyers to maximize profit.

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Definitions:

Behavioural

Pertains to the observable actions or responses of an organism, often studied in psychology to understand the underlying mental processes and motivations.

Cognitive

Relating to mental processes such as perception, memory, thinking, and problem-solving.

Physiological Arousal

A state of heightened physiological activity, involving the nervous and endocrine systems, often in response to stimuli.

Autonomic Nervous System

A part of the peripheral nervous system that controls involuntary bodily functions, including heart rate, digestion, and respiratory rate.