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The Price of Output to a Firm Is $9 and the Marginal

Question 106

Multiple Choice

The price of output to a firm is $9 and the marginal cost of the last unit produced is $8.50.This means the


A) extra benefit of the last unit produced is less than the extra cost.
B) firm should lower its output to increase profits.
C) firm is earning an average profit of $0.50.
D) extra benefit of the last unit produced is greater than the extra cost.

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