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What Happens If a Competitive Firm Is Currently Producing a Level

Question 197

Multiple Choice

What happens if a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost


A) A one-unit increase in output will increase the firm's profit.
B) A one-unit decrease in output will increase the firm's profit.
C) Total revenue exceeds total cost.
D) Total cost exceeds total revenue.

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