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Homework answers / question archive / As a manager of the firm, you calculate that the marginal revenue is R200 and the marginal cost is R1500

As a manager of the firm, you calculate that the marginal revenue is R200 and the marginal cost is R1500

Economics

As a manager of the firm, you calculate that the marginal revenue is R200 and the marginal cost is R1500. You should:

a) decrease output.

b) do nothing since you don't have information about average fixed costs.

c) reduce output to where marginal revenue is equal to marginal costs.

d) increase output to where marginal revenue is equal to marginal costs.

e) maintain the current output unchanged.

Option 1

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