A Profit-Maximizing Firm That Is Operating in the Short Run

question 98

Multiple Choice

A profit-maximizing firm that is operating in the short run will sell an additional unit of output as long as:

• A) as doing so reduces the firm's per-unit costs.
• B) doing so reduces the firm's marginal costs.
• C) doing so adds more to revenue than it adds to cost.
• D) there is additional plant capacity with which to produce.

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Definitions:

Investment Lenders

Professionals or institutions that provide capital to companies, individuals, or investors in exchange for interest payments and repayment of the principal at a future date.

Business Venture

An entrepreneurial enterprise or company with the aim to operate for profit by offering goods or services.

Straight Life Insurance

A type of life insurance policy that provides coverage for the insured's lifetime, with premiums typically paid until death.

Premiums

Payments made for insurance coverage, often periodically to maintain the insurance policy.