If the marginal revenue of the next widget a firm produces is $100 and its marginal cost is $110, a firm should: A). reconsider past production decisions. B). decrease production. C). increase production. D). hold production constant.

If the marginal revenue of the next widget a firm produces is $100 and its marginal cost is $110, a firm should: A). reconsider past production decisions. B). decrease production. C). increase production. D). hold production constant.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 5E

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Question

If the marginal revenue of the next widget a firm produces is $100 and its marginal cost is $110, a firm should:

		A). reconsider past production decisions.
		B). decrease production.
		C). increase production.
		D). hold production constant.

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