Figure 8-5 -If the Marginal Profit from Increasing Output by One Unit

question 27

Multiple Choice

Figure 8-5
-If the marginal profit from increasing output by one unit is negative, then to attain an optimum, the firm should

• A)increase output until marginal profit equals zero.
• B)reduce output until marginal profit equals zero.
• C)increase output until marginal profit is maximized.
• D)reduce output until marginal profit is maximized.

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