Purchase Solution

Marginal Revenue and Marginal Cost Relationship

Not what you're looking for?

Ask Custom Question

If a firm finds out that its MR is greater than its MC, it should:
a) increase production and sales
B0 decrease production and sales
c) encourage the entry of other firms into the market
d) keep raising its selling price until MR =MC.
E) change nothing because profits are maximized.

Purchase this Solution

Solution Summary

Answers a multiple choice question on Marginal Revenue and Marginal Cost.

Solution Preview

If a firm finds out that its MR is greater than its MC, it should:
a) increase production and sales
B0 decrease production and sales
c) encourage the entry of other firms into ...

Purchase this Solution


Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.