If a firm is producing where marginal revenue is greater than marginal cost: A)

ID: 1181525 • Letter: I

Question

If a firm is producing where marginal revenue is greater than marginal cost:

A) the revenue gained by producing one more unit of output equals the additional cost incurred by doing so.

B) the firm is already maximizing profits because revenue is being increased by more than costs.

C) the revenue gained by producing one more unit of output exceeds the additional cost incurred by doing so.

D) the revenue gained by producing one more unit of output is less than the additional cost incurred by doing so.

D) the revenue gained by producing one more unit of output is less than the additional cost incurred by doing so.

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