Ask Question
BusinessBusiness
24 October, 08:14

When the price is greater than the marginal cost for a firm in a competitive market,

a. the marginal cost must be falling.

b. the firm must be minimizing its losses.

c. there are opportunities to increase profit by increasing production. d. the firm should decrease output to maximize profit.

+3
Answers (1)
  1. 24 October, 11:09
    0
    Answer: there are opportunities to increase profit by increasing production.

    Explanation: one of the main purpose of doing business is to maximize profits.

    When the price of a good is higher than the marginal cost (cost associated with producing one more unit) the business should increase production in order to maximize profits. This is really effective in a competitive market as competitors will look for ways to make their products sell too.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “When the price is greater than the marginal cost for a firm in a competitive market, a. the marginal cost must be falling. b. the firm must ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
In what context (s) are intercultural communication skills and understanding most valuable
Answers (1)
A U. S. Treasury bill with 157 days to maturity is quoted at a discount yield of 2.62 percent. Assume a $1 million face value. What is the bond equivalent yield? (Do not round intermediate calculations.
Answers (1)
A new advertising agency serves a wide range of clients including manufacturers, restaurants, service businesses, department stores, and other retail establishments.
Answers (1)
On June 1, 2021, Blue Co. distributed to its common stockholders 190,000 outstanding common shares of its investment in Red Inc. which is an unrelated party. The book value on Blue's books of Red's $1 par common stock was $1.30 per share.
Answers (1)
Transaction Analysis Sheryl Hansen started a business on May 1, 20--. Analyze the following transactions for the first month of business using T accounts.
Answers (1)
New Questions in Business
Land used for raising crops or livestock is generally called a
Answers (2)
On July 1, 2013, Farm Fresh Industries purchased a specialized delivery truck for $126,000. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $30,000.
Answers (2)
Based on this which component of the sarcomere is actually being moved when the sarcomere contracts and relaxes
Answers (1)
Which of the following is the best example of direct-response print advertising? a. An advertorial A mailing from a travel agency that asks you to explain why your spouse deserves a dream vacation b. The opening Web page for ebates c.
Answers (1)
QS 9-5 Allowance method for bad debts LO P2 Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,000 account of a customer, C. Green. On March 9, it receives a $1,500 payment from Green. 1.
Answers (1)
Home » Business » When the price is greater than the marginal cost for a firm in a competitive market, a. the marginal cost must be falling. b. the firm must be minimizing its losses. c. there are opportunities to increase profit by increasing production. d.
Sign Up Forgot Password?