Asked by
Gregory McNally
on Oct 12, 2024
Verified
When MC > MR,the profit maximizing firm should
A) keep production unchanged.
B) increase production.
C) decrease production.
D) shut down.
E) go out of business.
Marginal Cost (MC)
The cost of producing one additional unit of output.
Marginal Revenue (MR)
The revenue derived from selling one additional unit of output.
- Acquire knowledge of the interplay between marginal cost, marginal revenue, and the enhancement of profit maximization.
Verified Answer
MB
Learning Objectives
- Acquire knowledge of the interplay between marginal cost, marginal revenue, and the enhancement of profit maximization.
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