For a firm producing at any level of output GREATER than the most profitable one,a reduction in output decreases total revenue _____ total cost.

Question

Quizplus · Accepted Answer

When a firm produces at any level of output greater than the most profitable one, it means that producing that level of output incurs more costs than the revenue generated. Therefore, reducing the output will lead to a reduction in total costs to a greater extent than the reduction in total revenue, thus resulting in a decrease in total revenue by less than it decreases.

For a Firm Producing at Any Level of Output GREATER