A Firm Is Currently Operating Where the MC of the Last

question 156

Multiple Choice

A firm is currently operating where the MC of the last unit produced is $84, and the MR of this unit is $70. What would you advise this firm to do?

• A) Shut down.
• B) Increase output.
• C) Stay at its current output.
• D) Decrease output.
• E) Decrease price.

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Definitions:

Depression

A mental health disorder characterized by persistent sadness, loss of interest, and a range of emotional and physical symptoms, impacting daily functioning.

Positive Outcomes

Favorable or beneficial results or effects that stem from a particular action, situation, or intervention.

Obsession

Persistent, intrusive, and unwanted thoughts that cause distress or anxiety.

Compulsion

An irresistible urge to behave in a certain way, especially against one's conscious wishes.