A firm is spending the profit-maximising amount on product development when
A) the advertising costs are covered.
B) people perceive the firm's product to be better than those of its competitors.
C) the price of the good is higher than its marginal cost.
D) the firm's total revenue exceeds its total costs.
E) the marginal cost of product development is equal to the marginal revenue from product development.
Correct Answer:
Verified
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A) depends on whether
