A Purely Competitive Firm's Output Is Currently Such That Its

question 140

Multiple Choice

A purely competitive firm's output is currently such that its marginal cost is $4 and marginal revenue is $5.Assuming profit maximization,the firm should:

• A) cut its price and raise its output.
• B) raise its price and cut output.
• C) leave price unchanged and raise output.
• D) leave price unchanged and cut output.

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Definitions:

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Companies or organizations that operate on a significant scale, often characterized by a large number of employees, extensive operations, or considerable market influence.

Key Characteristic

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