To Maximize Profits, a Competitive Firm Increases Its Output as Long

question 142

Multiple Choice

To maximize profits, a competitive firm increases its output as long as

• A)total revenue is greater than total cost.
• B)total revenue is less than total cost.
• C)marginal revenue is less than marginal cost.
• D)marginal revenue is greater than marginal cost.
• E)marginal revenue is positive.

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Definitions:

Utils

A hypothetical unit of measurement used in economics to quantify the level of utility or satisfaction derived from consuming goods or services.

Pairs of Socks

Multiple sets of soft foot garments, each set consisting of two items, typically worn for warmth, comfort, or hygiene reasons.

Opportunity Cost

The expense incurred by not choosing the second-best option available during decision-making.

United States

A country in North America consisting of 50 states and a federal district, known for its large economy and diverse population.