If a firm is producing at a quantity in which the marginal cost exceeds marginal revenue, the firm must decrease output to increase profit must increase output to increase profit is maximizing profit must shut-down to increase profit

If a firm is producing at a quantity in which the marginal cost exceeds marginal revenue, the firm must decrease output to increase profit must increase output to increase profit is maximizing profit must shut-down to increase profit

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter8: An Introduction To Perfect Competition

Section: Chapter Questions

Problem 4QFR

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Question

If a firm is producing at a quantity in which the marginal cost exceeds marginal
revenue, the firm
must decrease output to increase profit
must increase output to increase profit
is maximizing profit
O must shut-down to increase profit

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