A Producer Can Raise Profit by Expanding Output If

question 48

Multiple Choice

A producer can raise profit by expanding output if:

• A)marginal revenue is equal to marginal cost.
• B)marginal revenue is less than marginal cost.
• C)marginal revenue is negative.
• D)marginal cost is negative.
• E)marginal revenue is greater than marginal cost.

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Definitions:

Capitals

Financial assets or the financial value of assets, such as cash and securities, owned by a business.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Supplies

Materials or items which are used in the operation of a business or needed in the production process.

Services

Economic activities that are intangible, are not stored, and do not result in ownership transfer from the service provider to the service receiver.