QUESTION 21 When there is an increase in demand in the market, producers in the short run a. Can build a larger plant to increase production b. Can increase their output to maximum capacity by operating more hours c. Can increase their maximum capacity as the factors of productions are no longer fixed d. Cannot increase their output at all QUESTION 22 Under the marginal approach, a firm in a pure competition market will always operate at a. MR>MC b. MR and MC has no relationships c. MR = MC d. MR<MC
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Build a larger plant to increase production - This option is not feasible in the short run as building a larger plant takes time and resources. b. Increase their output to maximum capacity by operating more hours - This option is possible in the short run as Show more…
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