What Happens If a Competitive Firm Is Currently Producing a Level

question 208

Multiple Choice

What happens if a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue

• A)Average revenue exceeds marginal cost.
• B)The firm is earning a positive profit.
• C)A one-unit decrease in output would increase the firm's profit.
• D)The firm must lower marginal costs.

---

Definitions:

Commercial Logging

The practice of cutting down trees and preparing timber for market use, often involving large-scale operations.

Hydroelectric Power

Power produced by the movement of water, specifically the generation of electrical energy.

Sand Dunes

Mounds or ridges of sand formed by the wind or sometimes by water flow, common in deserts and on beaches.

Crescent Shapes

Forms or structures that are shaped like a crescent moon, often found in dune and ripple markings.