A marketing manager has just estimated that her firm's marginal revenue will become negative if a proposed price cut is made. This means that:
A) demand must be very elastic.
B) marginal cost must be negative already.
C) the firm is in pure competition.
D) more units may be sold-but total revenue will be less than it would be at the higher price.
E) None of these-a firm's marginal revenue can't be negative.
Correct Answer:
Verified
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Q205: Marginal cost is:
A) always less than average
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A)
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