If the marginal cost of producing a good is increasing as a firm produces more of the good, then ...

Author Question: If the marginal cost of producing a good is increasing as a firm produces more of the good, then ... (Read 41 times)

ETearle

Hero Member
Posts: 580

on: Jul 1, 2018

If the marginal cost of producing a good is increasing as a firm produces more of the good, then which of the following must be TRUE?

A) AFC is rising.
B) AVC is rising.
C) MC > AVC.
D) MPL is falling.

Question 2

A firm that seeks to maximize its revenue is most likely to adhere to which of the following?

A) MR = MC
B) MR = 0
C) MR = P
D) MR < MC

yasmin

Sr. Member
Posts: 319

Reply #1 on: Jul 1, 2018

Answer to Question 1

D

Answer to Question 2

B

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