When marginal revenue is negative


When marginal revenue is negative, the:

a. lost revenues associated with the price effect outweigh the revenue gains created by the output effect.

b. lost revenues associated with the price effect are outweighed by the revenue gains created by the output effect.

c. output effect is relatively small compared to the price effect.

d. firm is maximizing revenues.

e. firm cannot be maximizing profits

Request for Solution File

Ask an Expert for Answer!!
Business Economics: When marginal revenue is negative
Reference No:- TGS01463253

Expected delivery within 24 Hours