According to the marginal approach to profit, a firm should take any action that _____

Economics Dec 15, 2020

According to the marginal approach to profit, a firm should take any action that _____.

a) increases marginal revenue,

b) adds more to revenue than to cost,

c) increases total revenue,

d) decreases total cost,

e) decreases marginal cost.

Expert Solution

According to the marginal approach to profit, a firm should take any action that b) adds more to revenue than to cost,Yes, a firm producing should produce another unit as long as the revenue of doing so is more than the cost of doing so.

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