If MC MR,
A)output should be reduced.
B)marginal profit is positive.
C)there are losses.
D)output should be increased.

Name: If MC > MR, A)output should be reduced. B)marginal profit is positive. C)there are losses. D)output should be increased.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

If MC > MR,
A)output should be reduced.
B)marginal profit is positive.
C)there are losses.
D)output should be increased.

Quizplus · Accepted Answer

When Marginal Cost (MC) is greater than Marginal Revenue (MR), it means that producing an additional unit of output costs more than the revenue it generates. Therefore, to maximize profit, a firm should reduce output.