If a Firm Finds Out That Its Marginal Revenue Is

question 54

Multiple Choice

If a firm finds out that its marginal revenue is greater than its marginal cost, it should:

• A)increase production and sales.
• B)decrease production and sales.
• C)encourage the entry of other firms into the market.
• D)keep raising its selling price till marginal revenue equals marginal cost.
• E)change nothing because profits are maximized.