A Firm Now Produces Its Sales-Maximizing Level of Output

question 170

Multiple Choice

A firm now produces its sales-maximizing level of output.If the firm increased its output by one unit, its marginal revenue would become

• A)negative.
• B)smaller but still positive.
• C)larger but still negative.
• D)larger but still positive.

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Definitions:

Tossing

The act of throwing an object into the air with the outcome subject to chance, often used in determining probabilities.

Six Sided Die

A common type of die used in games, having six faces numbered one through six, with each face having an equal probability of landing up.

Probability

An indicator of how probable an event is to happen, represented by a numerical value ranging from 0 to 1.

Probability

The likelihood or chance that a particular event will happen, quantifiable as a value between zero (impossible) and one (certain).