Suppose, at Its Present Rate of Output, a Perfectly Competitive

question 11

Multiple Choice

Suppose, at its present rate of output, a perfectly competitive firm's marginal revenue exceeds both its marginal cost and its average variable cost.To maximize profit, the firm should

• A)lower the price
• B)raise the price
• C)increase output
• D)reduce output
• E)maintain its current rate of output

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Definitions:

Water Pollution

The contamination of water bodies (e.g., lakes, rivers, oceans, aquifers) by harmful substances or heat, negatively affecting aquatic ecosystems and human health.

Agricultural Chemicals

Substances such as fertilizers, herbicides, and pesticides used in farming to enhance plant growth and protect crops from pests and diseases.

Sediment

Particulate matter that settles at the bottom of a liquid or is transported by water, wind, or ice.

Waterlogging

The saturation of soil with water, usually due to excessive rain or irrigation, which can lead to reduced oxygen availability for plants.