Marginal revenue and marginal cost relationship


Question: If a firm finds out that its MR is greater than its MC, it should:

a) increase production and sales

b) 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

Solution Preview :

Prepared by a verified Expert
Microeconomics: Marginal revenue and marginal cost relationship
Reference No:- TGS01750696

Now Priced at $20 (50% Discount)

Recommended (94%)

Rated (4.6/5)