Suppose it costs a firm $200 million to produce and promote a sequel. If the firm follows the marginal principle and decides not to produce the movie, which of the following must be true?
A) The firm believes that the marginal benefit is less than $200 billion.
B) The firm believes that the marginal benefit is larger than $200 billion.
C) The firm believes that the marginal cost is less than $200 billion.
D) The firm believes that the marginal cost is larger than $200 billion.
Correct Answer:
Verified
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