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    If Marginal Cost Exceeds Marginal Revenue

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    If marginal cost exceeds marginal revenue, then:
    a. the firm ends up with a net loss
    b. the firm's average osts exceed average benefits
    c. the firm should decrease its production level
    d. none of the statements associated with this question are correct

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    c. the firm should decrease its production level

    With an increased ...

    Solution Summary

    This solution explains the correct answer for determining the outcome when marginal cost exceeds marginal revenue.