A Firm Is Currently Operating Where the MC of the Last

question 3

Multiple Choice

A firm is currently operating where the MC of the last unit produced = $64, and the MR of this unit = $70. What would you advise this firm to do?

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

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Definitions:

Profit

The financial gain made in a transaction or operation, calculated as the difference between revenue and costs.

Innovation Development

The process of designing, creating, and implementing new products, services, or technologies that offer new value to customers or improve operating processes.

Product Design

The process of creating and developing new products, taking into consideration aspects like functionality, aesthetics, and usability.

Production Options

Various methods or paths a company can take in the production process to produce goods or services.