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If a Firm's Marginal Cost Exceeds Its Marginal Revenue,then

Question 35

Multiple Choice

If a firm's marginal cost exceeds its marginal revenue,then


A) the firm's profit is negative (i.e.,the firm is suffering losses) .
B) the firm should shut down its operations.
C) cutting back production will increase the firm's profit.
D) the firm should reduce its per-unit cost by increasing its output.

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