When MR < MC for a Firm, the Firm Should

question 405

Multiple Choice

When MR < MC for a firm, the firm should

• A) reduce its level of output.
• B) stay at the same level of output.
• C) stop producing.
• D) increase output, unless P < AVC.

---

Definitions:

Environmental Changes

pertain to alterations in the external surroundings that can impact an organization, including economic, social, technological, and ecological factors.

Knowledge Development

The process of acquiring, creating, sharing, and utilizing information and expertise to achieve organizational or personal objectives.

Moral Principles

Fundamental beliefs about what is right, wrong, or ethical that guide individuals' behavior.

Ethics

A set of moral principles or values that govern individuals' behaviors or the conducting of an activity.