If a Perfectly Competitive Apple Farm's Marginal Revenue Exceeds the Marginal

question 139

Multiple Choice

If a perfectly competitive apple farm's marginal revenue exceeds the marginal cost of the last bushel of apples sold,what should the farm do to maximise its profit?

• A) Determine what the total revenue and total cost of production are
• B) Increase output
• C) Decrease output
• D) Lower its price to sell more

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Definitions:

Sampling Distribution

The distribution of a statistic (like the mean or variance) derived from a large number of samples drawn from a specific population.

Sample Mean Difference

The difference between the average values from two samples, used in hypothesis testing to compare two groups.

Equal-variances Test

A statistical test used to determine if two populations have the same variance.

Degrees of Freedom

The count of unique values or quantities that can be allocated to a statistical distribution or a system while still adhering to given constraints.