When Price Is Greater Than Marginal Cost for a Firm

question 140

Multiple Choice

When price is greater than marginal cost for a firm in a competitive market,

• A) marginal cost must be falling.
• B) the firm must be minimizing its losses.
• C) there are opportunities to increase profit by increasing production.
• D) the firm should decrease output to maximize profit.

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Definitions:

Quintile

A statistical value that divides a group of data into five equal parts, each containing 20% of the population.

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Payments made by governments to individuals without any goods or services being exchanged, such as social security benefits.

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A government program that provides monetary assistance to people with an inadequate or no income.

Welfare System

A government program designed to support individuals and families in need, providing financial assistance, healthcare, and social services.