If a Firm Is Producing an Output Rate at Which

question 252

Multiple Choice

If a firm is producing an output rate at which marginal cost is greater than price, the firm

• A) is sustaining economic loss.
• B) should increase its output level.
• C) should reduce its output level.
• D) will not be covering its fixed cost.

---

Definitions:

Past-Due Account

An account that has not been paid by the due date, typically relating to receivables or loans.

Maturity Date

The date on which a financial obligation or investment becomes due for payment or is settled.

Interest Payment

The payment made by a borrower to a lender as compensation for the use of borrowed money.

Four-Month Note

A promissory note or financial instrument that matures or comes due in four months.