If the Marginal Cost Exceeds the Marginal Revenue,a Perfectly Competitive

question 26

Multiple Choice

If the marginal cost exceeds the marginal revenue,a perfectly competitive firm should:

• A)raise the level of output to maximize profit.
• B)keep the level of output constant.
• C)raise the level of output to minimize loss.
• D)reduce the level of output to minimize loss.
• E)shut down.

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Definitions:

Business Cards

Small cards printed with one's name, professional job title, company affiliation, contact information, and sometimes social media details, used for professional networking.

Customs

Governmental policies and regulations that control the import and export of goods to and from a country, including duties and inspections.

Implied Warranty

A legal term for the assumption that a sold good is fit for its intended purpose, even if not expressly stated.

Principal

The amount of money initially invested or loaned, in contrast to interest or profit earned from the investment.