Statement I.Marginal revenue is the additional revenue from selling one more unit of output.
Statement II.A firm will always produce at an output at which marginal revenue is greater than marginal cost,except when it is minimizing its losses.

Question

Quizplus · Accepted Answer

Statement I is true as marginal revenue is defined as the additional revenue generated from selling one extra unit of output. 
However, statement II is not always true. A firm may not always produce at an output where marginal revenue is greater than marginal cost. In the short run, a firm may continue to produce even if marginal revenue is less than marginal cost as long as it can cover its variable costs, and contribute towards the fixed costs of the business. This situation is common in the case of a firm that is experiencing losses, and is trying to minimize them. Hence, statement II is false.