A Firm Should Increase the Quantity of Output as Long

question 25

Multiple Choice

A firm should increase the quantity of output as long as its:

• A) marginal revenue is greater than its marginal cost.
• B) marginal cost is greater than its marginal revenue.
• C) average revenue is greater than its average total cost.
• D) average revenue is greater than its average variable cost.

---

Definitions:

Passive Margin

A coastline margin that is not associated with plate boundaries and therefore experiences little to no seismic or volcanic activity.

Continental Collision

Continental collision occurs when two continental plates converge, resulting in the formation of mountain ranges and geological uplift.

Subduction Zone

A region where one tectonic plate moves under another, leading to geological phenomena like volcanic activity and earthquakes.

Isostatic Rebound

The rise of land masses that were depressed by the weight of ice sheets during glaciation, occurring as the ice melts and the land slowly returns to its original elevation.