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If Marginal Cost Exceeds Marginal Revenue, a Profit-Maximizing Firm Should

Question 189

Multiple Choice

If marginal cost exceeds marginal revenue, a profit-maximizing firm should


A) expand output until marginal cost equals marginal revenue.
B) expand output until marginal revenue equals price.
C) reduce output until marginal cost equals marginal revenue.
D) reduce output until price equals average total cost.

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