Max sells maps.The map industry is competitive.Max hires a business consultant to analyze his company's financial records.The consultant recommends that Max increase his production.The consultant must have concluded that Max's

Question

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The consultant's recommendation to increase production suggests that Max's marginal revenue exceeds his marginal cost. This is because producing more would result in an increase in total revenue that is greater than the increase in total cost. Therefore, the consultant's analysis must have concluded that Max can increase his profits by producing more, which implies that his marginal revenue exceeds his marginal cost.

Max Sells Maps