Suppose, at Its Current Output Level, a Firm's Marginal Profit

question 10

Multiple Choice

Suppose, at its current output level, a firm's marginal profit is positive. Therefore, to maximize profit, it should:

• A) decrease output until marginal profit is zero.
• B) increase output because MR is less than MC.
• C) increase both its output and its price.
• D) increase output because MR is greater than MC.
• E) increase output until it is producing at full capacity.

---

Definitions:

House Rules Committee

A powerful committee in the United States' House of Representatives responsible for determining under what rule other bills will come to the floor.

Political Processes

Political processes refer to the activities that relate to the governance of a country or area, especially the debate between parties having power.

Terms of Office

The fixed length of time during which elected officials or appointees serve in their respective roles.

Constituencies

The body of voters or residents in a specified area who are entitled to elect a representative to a legislative or other public body.