If a firm's marginal revenue is below its marginal cost, an increase in production will usuallyQuestion 4Select one:a.leave profits unchanged.b.increase profits.c.increase marginal revenue.d.decrease profits.

If a firm in a perfectly competitive market faces a market price of $7 and it decides to increase its production from 4000 to 12 000 units, the firm’s marginal revenue: Question 5Select one:A.Will rise once diminishing marginal product sets in.B.Will stay the same.C.Will increase from $28 000 to $84 000.D.Will diminish once diminishing marginal product sets in.

Marginal revenue is the:Multiple Choicechange in product price associated with the sale of one more unit of output.change in average revenue associated with the sale of one more unit of output.difference between product price and average total cost.change in total revenue associated with the sale of one more unit of output.

A company conducting business in a monopolistically competitive market will most likely maximise profits when its output quantity is set such that ______.Average cost is minimised.Marginal revenue equals average cost.Marginal revenue equals marginal cost.

Which of the following explains why the law of diminishing marginal returns occurs?APer-units costs for a firm increase as the firm builds successively larger plant sizes.BSuccessive units of a good yield lesser amounts of satisfaction to consumers.CAdditional variable resources crowd fixed resources.DWhen a firm reduces price to increase sales, additional revenue to the firm is less than the price.EWhen the price of a product is reduced, total revenue falls.

You are wasting resources that would be better spent elsewhere:Multiple choice question.if you continue producing when marginal benefit is less than marginal cost.if you continue producing when total benefit is less than total cost.if you continue producing when marginal benefit is greater than marginal cost.if you continue producing when marginal benefit is equal than profit.