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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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    https://brainmass.com/economics/pricing-output-decisions/marginal-cost-exceeds-marginal-revenue-507917

    Solution Preview

    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.

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