As long as the marginal benefit of producing each successive unit is greater than the marginal cost, a firm increase total profits by ______ (a. Increasing b.decreasing c. stopping) Its production. SO even after marginal cost begins to rise (as diminishing returns set )producers are likely _____ (a. Continue b. Not continue) to producing until marginal cost equals the marginal benefit from selling the good.
As long as the marginal benefit of producing each successive unit is greater than the marginal cost, a firm increase total profits by ______ (a. Increasing b.decreasing c. stopping) Its production. SO even after marginal cost begins to rise (as diminishing returns set )producers are likely _____ (a. Continue b. Not continue) to producing until marginal cost equals the marginal benefit from selling the good.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter9: Market Structure And Long-run Equilibrium
Section: Chapter Questions
Problem 1MC
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As long as the marginal benefit of producing each successive unit is greater than the marginal cost, a firm increase total profits by ______ (a. Increasing b.decreasing c. stopping) Its production. SO even after marginal cost begins to rise (as diminishing returns set )producers are likely _____ (a. Continue b. Not continue) to producing until marginal cost equals the marginal benefit from selling the good.
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