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Basic Question 8 of 8

As long as marginal cost is below marginal revenue, a competitive firm should ______

A. increase production.
B. hold production constant.
C. decrease production.
Check Answer Previous Q Print

User Contributed Comments 2

User Comment
danlan Revenue=output, cost=input, revenue-cost=net income
khalifa92 the profoundness of this recipe is awe
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition

CFA® 2024 Level I Curriculum, Volume 1, Module 1.