For a firm producing at any level of output GREATER THAN the most profitable one, a reduction in output decreases total revenue _____ total cost.

Question

Quizplus · Accepted Answer

For a firm producing at any level of output greater than the most profitable one, a reduction in output decreases total revenue more than total cost. This is because the marginal revenue from the last unit of output is less than the marginal cost, so reducing output will reduce total revenue by more than it reduces total cost.

For a Firm Producing at Any Level of Output GREATER