Firms That Face Capacity Constraints Can Increase Output Only Up

question 21

Multiple Choice

Firms that face capacity constraints can increase output only up to the capacity,but no further.Therefore,firms​

• A)​Should price to capacity as long as MR > MC
• B)Should price to capacity as long as MR = MC
• C)Should price to capacity as long as MR < MC
• D)​Should not take capacity into consideration in pricing decisions

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