If a Firm Is Producing Where Marginal Revenue Is Greater

question 9

Multiple Choice

If a firm is producing where marginal revenue is greater than marginal cost,

• A) the revenue gained by producing one more unit of output exceeds the additional cost incurred by doing so.
• B) the revenue gained by producing one more unit of output equals the additional cost incurred by doing so.
• C) the revenue gained by producing one more unit of output is less than the additional cost incurred by doing so.
• D) the firm is already maximizing profits because revenue is being increased by more than costs.

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