What Might Cause a Firm to Want to Increase Production

Multiple Choice

What might cause a firm to want to increase production past the point where additional revenues offset additional costs?

A) The firm is enjoying the benefits of the learning curve
B) Future production costs will be higher
C) Managers are being rewarded on the basis of short-run profits
D) The firm relies on direct growth incentives
E) The firm wants to violate the rule of equating marginal revenue equal to marginal cost