Which of the Following Statements Best Expresses a Firm's Profit-Maximizing

question 46

Multiple Choice

Which of the following statements best expresses a firm's profit-maximizing decision rule?

• A)If marginal revenue is greater than marginal cost, the firm should increase its output.
• B)If marginal revenue is less than marginal cost, the firm should shut down in the short run.
• C)If marginal revenue equals marginal cost, the firm should produce exactly one more unit of output.
• D)All of the above are correct.

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Definitions:

Invoice

A document issued by a seller to a buyer, indicating items sold, amounts due, shipping date, payment terms, and other transaction details.

Home Page

The main or starting page of a website or software application, often providing navigation to other sections or features.

Onscreen Form

An electronic form displayed on a computer screen that allows a user to enter or modify data.

Make Deposits Window

A feature in accounting software where users can record and manage the deposit of funds into bank accounts.