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If Price Is Greater Than Marginal Cost and Output Is

Question 84

Multiple Choice

If price is greater than marginal cost and output is infinitely divisible, then


A) decreasing output decreases revenue less than it decreases cost.
B) increasing output increases revenue more than it increases cost.
C) increasing output increases revenue less than it increases cost.
D) decreasing output increases revenue more than it increases cost.
E) increasing output has no effect on revenue and cost.

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