What might cause a firm to want to increase production past the point where additional revenues offset additional costs (i.e., MC=MR)?
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 to marginal cost
d. The firm relies on direct growth incentives.
A -- the learning curve ...
This solution explains what might cause a firm to want to increase production past the point where MC=MR. The correct answer and explanation is provided.