Multiple Choice
A firm that was taking a loss when selling 1,000 units of output was able to reduce that loss by increasing its sales. Based on this we know that at 1,000 units sold, total cost was:
A) less than total revenue, and marginal cost was less than marginal revenue.
B) less than total revenue, and marginal cost was greater than marginal revenue.
C) greater than total revenue, and marginal cost was less than marginal revenue.
D) greater than total revenue, and marginal cost was greater than marginal revenue.
Correct Answer:
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