When MC > MR,the Profit Maximizing Firm Should

question 235

Multiple Choice

When MC > MR,the profit maximizing firm should

• A)keep production unchanged.
• B)increase production.
• C)decrease production.
• D)shut down.
• E)go out of business.

---

Definitions:

Small Businesses

Refers to privately owned corporations, partnerships, or sole proprietorships that have fewer employees and lower annual revenue than a regular-sized business or corporation.

Wholesaling

The selling of goods in large quantities at lower prices to be retailed by others.

High Initial Financing

The large amount of capital required at the start of a venture or project to cover costs before generating revenue.