If a Perfectly Competitive Firm Is Producing at an Output

question 81

Multiple Choice

If a perfectly competitive firm is producing at an output at which marginal cost exceeds marginal revenue

• A) price will be at the profit maximizing level.
• B) sales will be at the profit maximizing level.
• C) the firm should expand production.
• D) the firm should reduce production.

---

Definitions:

Enforceable

Capable of being imposed or upheld by legal means or action.

Statutory Law

Laws enacted by a legislative body, such as Congress or a state legislature.

Prohibited

Something that is forbidden or disallowed by law or regulation.

Illegal

Activities or actions that are forbidden by law and subject to penalties.