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Which of the Following Statements Is TRUE

question 24

Multiple Choice

Which of the following statements is TRUE?
I. If a competitive firm sells its product at a price of $80, the firm should increase production from 100 to 101 units if the total cost rises from $2,000 to $2,066.
II. If the marginal cost of the tenth unit is $14 and the marginal revenue is $10, the firm should produce the tenth unit to increase profits by $4.
III. For competitive firms, profits are maximized at MR = MC or P = MC, since P = MR.


Definitions:

Growth Needs

Psychological requirements that drive personal development, self-improvement, and the fulfillment of one's potential.

ERG Theory

A theory of human motivation developed by Clayton Alderfer that categorizes core needs into three groups: Existence, Relatedness, and Growth.

Satisfied Need

A requirement or desire that has been fulfilled, contributing to an individual's contentment or well-being.

ERG Theory

A motivation theory that categorizes human needs into existence, relatedness, and growth.

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