Refer to the diagram above. Based on the information illustrated in this graph, which of the following is an accurate statement?
A. MC is initially downward sloping in the region of increasing MR at low output levels
B. As production increases, marginal revenue always increase so profits rise
C. as production decreases, marginal revenue will increase so profits will rise
D. a profit-seeking firm should continue to expand production as long as MR is less than MC
Answer:A
Refer to the diagram above. Based on the information illustrated in this graph, which of the following is an accurate statement?
A. MC is initially downward sloping in the region of increasing MR at low output levels B. As production increases, marginal revenue always increase so profits rise C. as production decreases, marginal revenue will increase so profits will rise D. a profit-seeking firm should continue to expand production as long as MR is less than MC
Explanation: 44.