What should firm do when Marginal revenue is greater than marginal cost?

CA Foundation · Business Economics · MTP · June 2024
What should firm do when Marginal revenue is greater than marginal cost?
(A) A. Firm should expand output
(B) B. Effect should be made to make them equal
(C) C. Prices should be covered down
(D) D. All of these

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Firm should expand output

Topics: Determination of National Income

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