If a Firm Is a Profit Maximizer and Faces Positive

question 29

Multiple Choice

If a firm is a profit maximizer and faces positive marginal costs,

• A) there is a natural limit to the size of the firm, where MR = 0.
• B) there is no natural limit to the size of the firm; it can be as large as it wants to be.
• C) there is a natural limit to the size of the firm, where MR > 0.
• D) there is no natural limit to the size of the firm, hence the need for government regulation.

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