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Question 132

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Use the following to answer questions:
Figure: The Marginal Decision Rule Use the following to answer questions: Figure: The Marginal Decision Rule   -(Figure: Marginal Decision Rule)  Look at the figure The Marginal Decision Rule. If P<sub>1</sub> is the market price and if this firm is maximizing profit, it should produce: A)  where MR > MC. B)  at quantity q<sub>2</sub>. C)  at quantity q<sub>1</sub>, where MR > MC. D)  a quantity greater than q<sub>1</sub> but less than q<sub>2</sub>.
-(Figure: Marginal Decision Rule) Look at the figure The Marginal Decision Rule. If P1 is the market price and if this firm is maximizing profit, it should produce:


A) where MR > MC.
B) at quantity q2.
C) at quantity q1, where MR > MC.
D) a quantity greater than q1 but less than q2.

Correct Answer:

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