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If Current Output Is Less Than the Profit-Maximizing Output, Which

Question 17

Multiple Choice

If current output is less than the profit-maximizing output, which must be true?


A) Total revenue is less than total cost.
B) Average revenue is less than average cost.
C) Average revenue is greater than average cost.
D) Marginal revenue is less than marginal cost.
E) Marginal revenue is greater than marginal cost.

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