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If at an Output of 4,000 Units, Sloan Company Is

Question 51

Multiple Choice

If at an output of 4,000 units, Sloan Company is making an economic profit and marginal profit is $20 per unit, the firm should


A) reduce output to maximize total profit.
B) increase output until marginal profit falls to zero.
C) do whatever is necessary to increase marginal profit.
D) There is not enough information to make a decision.

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