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A Firm Should _____ Output Whenever MR Exceeds MC Because

Question 29

Multiple Choice

A firm should _____ output whenever MR exceeds MC because _____.


A) reduce; revenues will rise by more than costs, increasing the firm's profit
B) reduce; total revenues exceed total costs
C) expand; revenues will rise by more than costs, increasing the firm's profit
D) not change; selling more output will increase marginal revenue by less than marginal cost

Correct Answer:

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