Firms That Face Capacity Constraints Can Only Increase Output Only

question 3

Multiple Choice

Firms that face capacity constraints can only 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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Race

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