If a Firm Is Producing Where Marginal Revenue Is Greater

question 9

Multiple Choice

If a firm is producing where marginal revenue is greater than marginal cost,

• A) the revenue gained by producing one more unit of output exceeds the additional cost incurred by doing so.
• B) the revenue gained by producing one more unit of output equals the additional cost incurred by doing so.
• C) the revenue gained by producing one more unit of output is less than the additional cost incurred by doing so.
• D) the firm is already maximizing profits because revenue is being increased by more than costs.

---

Definitions:

Vandalism

The act of deliberately destroying or damaging public or private property.

Deliberate

Carried out consciously and intentionally, often after careful consideration.

Organizational Change

The process through which a company or any kind of organization changes its operational methods, strategies, structures, or culture to improve efficiency, effectiveness, or performance.

Managers

Individuals responsible for directing and overseeing the work of a group of people in an organization.