If Current Output Is Less Than the Profit-Maximizing Output, Which

question 17

Multiple Choice

If current output is less than the profit-maximizing output, which must be true?

• A) Total revenue is less than total cost.
• B) Average revenue is less than average cost.
• C) Average revenue is greater than average cost.
• D) Marginal revenue is less than marginal cost.
• E) Marginal revenue is greater than marginal cost.