If marginal revenue exceeds marginal cost at a particular level of output, then profit can be increased by increasing the level of output.

Name: If marginal revenue exceeds marginal cost at a particular level of output, then profit can be increased by increasing the level of output.
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Question

Quizplus · Accepted Answer

When marginal revenue exceeds marginal cost, producing and selling one more unit will add more to revenue than it adds to cost, thereby increasing profit.

If Marginal Revenue Exceeds Marginal Cost at a Particular Level