At the present level of production, the marginal revenue exceeds the marginal cost of production. In order to attain equilibrium, the producer should___ Option 1: Increase the level of output. Option 2: Decrease the level of output. Option 3: Should keep the output level constant. Option 4: Should reduce the price of the product.

The answer is 'Increase the level of output.'. View full solution:

CUET Economics - At the present level of production, the marginal revenue exceeds the marginal cost of production. In order to attain equilibrium, the producer should___ | PYQs + Solutions

CUET Economics 2025 21 May Shift 1

Micro

Easy

Increase the level of output.

Decrease the level of output.

Should keep the output level constant.

Should reduce the price of the product.

✅ Correct Option: 1

Related questions:

13th May Shift 1

The difference between firms total revenue and total cost is called?

6th June Shift 1

Match List-I with List-II

List-I	List-II
(A) Constant returns to scale	(I) When a proportional increase in all inputs results in an increase in output by a larger proportion.
(B) Decreasing Returns to Scale	(II) The relationship between inputs used and output produced by the firm.
(C) Increasing Returns to Scale	(III) When a proportional increase in all inputs results in an increase in output by a smaller proportion.
(D) Production function	(IV) When a proportional increase in all inputs results in an increase in output by the same proportion.

Choose the correct answer from the options given below:

13 May Shift 2

In a long run average cost curve which point is said to be the constant return to scale?