CFA Practice Question

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CFA Practice Question

As long as marginal cost is below marginal revenue, a competitive firm should ______

A. increase production.
B. hold production constant.
C. decrease production.
Correct Answer: A

Since the revenue obtained from selling another unit of output exceeds the cost of producing that unit, it is profitable to increase production.

User Contributed Comments 2

User Comment
danlan Revenue=output, cost=input, revenue-cost=net income
khalifa92 the profoundness of this recipe is awe
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