If the marginal revenue from a quality improvement is _______ its marginal cost, it______ _ profitable to produce a higher- quality product.
A)greater than; is not
B)less than; is
C)greater than; is
D)exactly double; is not

Question

Quizplus · Accepted Answer

If the marginal revenue from a quality improvement is greater than its marginal cost, it is profitable to produce a higher-quality product. Option A and D are not coherent with the given explanation. Option B contradicts the given explanation which states that if marginal revenue is less than marginal cost, it is not profitable to produce.

If the Marginal Revenue from a Quality Improvement Is _______