If a Perfectly Competitive Firm Is Operating in the Short

question 137

Multiple Choice

If a perfectly competitive firm is operating in the short run and seeks to maximize profit,the firm should:

• A) increase output whenever marginal cost is less than average total cost.
• B) increase output whenever marginal revenue is less than marginal cost.
• C) choose the output where per-unit profit is greatest.
• D) increase output whenever price exceeds marginal cost.

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Definitions:

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals.

Direction

Guidance or instructions given to manage or steer actions or decisions towards achieving a specific goal.

Experiential Learning

A learning theory that emphasizes learning through experience or learning by doing, involving active participation in a learning process.

Job Rotations

A workplace strategy where employees are moved between different positions or tasks to gain exposure to various aspects of an organization.