At the current level of production,if the firm's marginal costs exceeds marginal benefits,then
A)The company should produce more
B)The company is maximizing profit at this output
C)The company is producing too much
D)Not possible to determine

Question

Quizplus · Accepted Answer

If the marginal costs exceed marginal benefits, it means that each additional unit produced is costing more than it is contributing to revenue. This indicates that the company is producing too much and should cut back production to reduce costs and maximize profits.

At the Current Level of Production,if the Firm's Marginal Costs