If a Firm Under Monopolistic Competition Is Producing a Quantity

question 152

Multiple Choice

If a firm under monopolistic competition is producing a quantity that generates MC > MR, then the marginal decision rule tells us that profit:

• A) can be increased by increasing production.
• B) can be increased by decreasing production.
• C) can be increased by decreasing the price.
• D) is maximized only if MC = P.

---

Definitions:

Ingratiation

A social influence strategy used to make oneself more likable to others, often through flattery or by conforming to their opinions.

Voluntary Tasks

Activities or duties undertaken willingly without coercion, often beyond the required or expected norms.

Subordinate

An employee or member of an organization who reports to a supervisor or a higher authority.

Performance Deficiencies

Refers to the gap between actual and expected performance levels in employees or systems.