A Price-Taking Firm Will Tend to Expand Its Output as Long

question 88

Multiple Choice

A price-taking firm will tend to expand its output as long as price exceeds average variable cost and:

• A) its marginal revenue is positive.
• B) its marginal revenue is greater than the market price.
• C) its marginal revenue is less than the market price.
• D) its marginal cost is less than the market price.

---

Definitions:

Network Problem

An issue arising within a system of interconnected computers or devices, affecting communication, data exchange, or functionality.

Fixed Interval

A schedule or method where events or rewards occur at consistent, predetermined times.

Fixed Salary

A consistent amount of payment received by an employee, often on a monthly basis, regardless of hours worked.

Paycheck

A document or electronic transfer representing the amount of wages or salary paid to an employee for their work.