When Price Is Greater Than Marginal Cost for a Firm

question 205

Multiple Choice

When price is greater than marginal cost for a firm in a competitive market,what should the firm do to maximize profit

• A)The firm should increase production since its marginal cost is falling.
• B)The firm must be minimizing its losses since its marginal cost is rising.
• C)There are opportunities to increase profit by increasing production.
• D)The firm should decrease output to maximize profit.

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Definitions:

Axons

Long, slender projections of nerve cells which conduct electrical impulses away from the neuron's cell body to other neurons, muscles, or glands.

Cell Body

The spherical part of a neuron that contains the nucleus and connects to the dendrites, which bring information to the neuron, and the axon, which sends information to other neurons.

Chromosomes

Threadlike structures made of DNA molecules that contain the genes and are located in the nucleus of most living cells, playing a key role in inheritance and determining the characteristics of an organism.

Axon

A part of a neuron that transmits electrical impulses away from the neuron's cell body to other neurons or muscles.