A Competitive Firm Is Currently Producing a Quantity of Output

question 569

Multiple Choice

A competitive firm is currently producing a quantity of output at which marginal revenue exceeds marginal cost. In order to increase its profit, the firm should

• A)increase the price of the good that it produces and sells.
• B)increase its quantity of output.
• C)decrease its total cost.
• D)decrease its average total cost.

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Definitions:

Mirror Image

A principle in contract law that requires the terms of the acceptance to exactly match the terms of the offer.

Quasi-Contract Theory

A legal concept where a court imposes a contractual obligation on a party who has not actually entered into a contract, to prevent unjust enrichment.

Family Relationships

Connections between individuals related by blood, marriage, or adoption, affecting legal rights and responsibilities.

Illegal

Refers to actions or activities that are forbidden by law and subject to criminal penalties and sanctions.