If a Competitive Firm Is Currently Producing a Level of Output

question 239

Multiple Choice

If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then

• A)a one-unit increase in output will increase the firm's profit.
• B)a one-unit decrease in output will increase the firm's profit.
• C)total revenue exceeds total cost.
• D)total cost exceeds total revenue.

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Definitions:

Latin

An ancient Italic language of the Roman Empire, used historically in scholarship and as a liturgical language of the Catholic Church.

Projection

Psychological defense mechanism in which unacceptable or threatening impulses or feelings are seen as originating with someone else, usually the target of the impulses or feelings.

Defense Mechanism

Psychological strategies brought into play by individuals, groups, or even nations to cope with reality and to maintain self-image.

Infidelity

Refers to the act of being unfaithful or violating a commitment or trust in a romantic relationship.