If marginal costs exceed marginal benefits,then:

Name: If marginal costs exceed marginal benefits,then:
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Question

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When marginal costs exceed marginal benefits, it means that the additional cost of producing one more unit is higher than the additional benefit received from producing that extra unit. Thus, the firm should reduce the production level until marginal costs equal marginal benefits to maximize profits. This decision will help the firm avoid losses and operate at the most efficient level of production.

If Marginal Costs Exceed Marginal Benefits,then