If a Competitive Firm Is Currently Producing a Level of Output

question 123

Multiple Choice

If a competitive firm is currently producing a level of output at which profit is not maximized,then what must be the case for the firm

• A)Marginal revenue exceeds marginal cost.
• B)Marginal cost exceeds marginal revenue.
• C)Total cost exceeds total revenue.
• D)Marginal revenue is not equal to marginal cost.

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Definitions:

Efficient

In economic terms, relates to an allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.

Opportunity Cost

Opportunity cost represents the value of the best alternative forgone when a decision is made to choose one option over another.

Parking Permit

A document or label allowing a vehicle to be parked in a designated area or facility.

Opportunity Cost

The expense associated with not choosing the second-best option when a decision or choice is made.