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 cost is larger than $200 billion.
C) The firm believes that the marginal benefit is larger than $200 billion.
D) The firm believes that the marginal cost is less than $200 billion.
Correct Answer:
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