6
QuizMultiple Choice

Case Study: Starting a Business — Quiz

Question 6 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

How can producers make the most profit? Choose three correct answers.

Answer
A
They can keep marginal revenues below marginal costs.
B
They can lower prices to decrease marginal revenue.
C
They can work to decrease their marginal cost.
D
They can raise prices to increase marginal revenue.
E
They can work to increase their marginal cost.
F
They can keep marginal costs below marginal revenues.

Explanation

Producers can improve profit by reducing the cost of making each additional unit, so choice C is correct. They can also seek to increase the revenue earned from selling additional units, as choice D describes. When marginal revenue is greater than marginal cost, producing and selling more units adds to profit, which is the idea in choice F. Keeping marginal revenue below marginal cost or increasing marginal cost would work against profit.

AI-written and checked against the verified answer.

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