The Table Given Below Reports the Marginal Revenue and Marginal

question 114

Multiple Choice

The table given below reports the marginal revenue and marginal cost of Holmes Detective Agency for each client.Table 9.2

-Suppose at a certain quantity of output, a firm's average-total-cost curve lies above its demand curve. At this quantity of output, the firm:

• A)is earning negative economic profit.
• B)is earning zero economic profit.
• C)is maximizing profit.
• D)should increase its output to maximize profit.
• E)should reduce output to maximize negative economic profit.