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If at the Current Level of Output a Firm's Price

Question 22

Multiple Choice

If at the current level of output a firm's price exceeds its marginal revenue and its marginal revenue exceeds its marginal cost, then to maximise profits it should


A) reduce price and raise output.
B) keep price the same and increase output.
C) keep price the same and reduce output.
D) reduce price and output.
E) raise price and output.

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