Explore BrainMass
Share

Marginal Revenue and Marginal Cost Relationship

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.

© BrainMass Inc. brainmass.com July 21, 2018, 3:40 pm ad1c9bdddf

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 ...

Solution Summary

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

$2.19