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Suppose,at Its Current Output Level,a Firm's Marginal Profit Is Positive

Question 46

Multiple Choice

Suppose,at its current output level,a firm's marginal profit is positive.Therefore,to maximize profit,it should:


A) decrease output until marginal profit is zero.
B) increase output because marginal revenue [MR] is less than marginal cost [MC].
C) increase both its output and its price.
D) increase output because MR is greater than MC.
E) increase output until it is producing at full capacity.

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