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Marginal Revenue and Marginal Cost Relationship

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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.

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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 ...

Solution Summary

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

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