If a Competitive Firm Continues to Produce When Marginal Revenue

question 11

Multiple Choice

If a competitive firm continues to produce when marginal revenue is less than marginal cost, then each additional unit of output

• A)maximizes profits or minimizes losses.
• B)minimizes losses.
• C)reduces total profit.
• D)increases total profit.
• E)increases both total costs and total revenue.

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Definitions:

Analyzing Data

The process of inspecting, cleaning, transforming, and modeling data to discover useful information and support decision-making.

Rate of Productivity

The measure of output or efficiency of production within a specified period of time.

Dependent Variable

A variable in scientific research that is affected by other variables, measured to test the effect of the independent variable.

Loudness of Music

The perceived volume of music, which can vary based on the sound's intensity and the listener's sensitivity.