Suppose an Entrepreneur Commits to a Production Schedule but Underestimates

Multiple Choice

Suppose an entrepreneur commits to a production schedule but underestimates the market price for his products. What will be true about his current level of production?

A) Losses will be very high.
B) Marginal cost will be less than marginal revenue.
C) Marginal cost will be more than marginal revenue.
D) Average total cost will exceed price.
E) Total fixed costs will be too low.