If a Firm Is Producing an Output Rate at Which

question 252

Multiple Choice

If a firm is producing an output rate at which marginal cost is greater than price, the firm

• A) is sustaining economic loss.
• B) should increase its output level.
• C) should reduce its output level.
• D) will not be covering its fixed cost.

---

Definitions:

Phillips Curve

A concept in economics that indicates an inverse relationship between the rate of unemployment and the rate of inflation within an economy.

Inflation Rate

The rise in the average cost of goods and services throughout an economy over a specified period.

Money Supply Growth

The rate at which the total amount of monetary assets in an economy increases over time, which can influence inflation, interest rates, and economic growth.

Unemployment Rate

The proportion of the labor force that is not currently employed but is actively looking for work and willing to work.