For a Perfectly Competitive Firm, When MC Is Less Than

question 79

Multiple Choice

For a perfectly competitive firm, when MC is less than MR

• A) the producer has an incentive to expand output.
• B) the producer has an incentive to decrease output.
• C) the producer has no incentive to change production.
• D) economic profits must be positive.

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Definitions:

Negative Words

Words that convey a negative connotation or sentiment, which can potentially deter positive communication.

Goodwill

The benefit or value that an entity has built up over time, often reflecting in customer loyalty, brand reputation, or business relationships.

Concise

Expressing much in few words; clear and succinct.

Barest Essentials

The most basic and fundamental components or requirements needed for something.