The Figure Given Below Shows the Revenue and Cost Curves

question 94

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.1

-In the short run, if the marginal cost exceeds the marginal revenue, a perfectly competitive firm should:

• A)raise the level of output to maximize profit.
• B)keep the level of output constant.
• C)raise the level of output to minimize loss.
• D)reduce the level of output to minimize loss.
• E)shut down.

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Definitions:

Competitive Advantage

The unique attributes or capabilities a company has that enable it to outperform its competitors, leading to greater sales or margins.

Defined

Clearly characterized or determined; having a precise meaning.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, such as superior quality, cost advantages, or innovative features.

Short-term Investment

An investment held for less than twelve months before being sold or converted to cash.