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
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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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