A Price-Taking Firm Will Tend to Expand Its Output as Long

question 88

Multiple Choice

A price-taking firm will tend to expand its output as long as price exceeds average variable cost and:

• A) its marginal revenue is positive.
• B) its marginal revenue is greater than the market price.
• C) its marginal revenue is less than the market price.
• D) its marginal cost is less than the market price.

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Definitions:

Ambitious Changes

Significant alterations or reforms aimed at achieving substantial improvements or advancements.

Minimal Resources

Describes a situation or condition where there is a scarcity of materials, finances, or capabilities needed to achieve an objective.

Bending the Rules

The act of slightly altering or interpreting regulations in a non-traditional way to achieve a desired outcome, often in a creative or unorthodox manner.

Ethically Permissible

Actions or decisions that are allowable or acceptable within ethical guidelines or moral standards.