An Increase in a Firm's Marginal Revenue Causes A(n)

question 86

Multiple Choice

An increase in a firm's marginal revenue causes a(n)

• A)increase in the quantity of labor demanded by the firm.
• B)increase in the demand for labor by the firm.
• C)decrease in the demand for labor by the firm.
• D)decrease in the quantity of labor demanded by the firm.
• E)increase in the supply of labor.

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Definitions:

Economic Profit

The total revenue of a business minus its explicit and implicit costs.

Least-Cost Production Technique

An approach in production that minimizes input costs for a given output level, optimizing resource use efficiency.

Competitive Market Economy

An economic system where supply and demand determine the prices of goods and services, with minimal government intervention.

Economically Most Efficient

The state of achieving the highest level of output with the lowest possible input, optimizing the use of resources without waste.