If a firms marginal revenue is greater than its marginal cos

If a firm\'s marginal revenue is greater than its marginal cost, then: Select one: less output will add more to revenue than to cost each added unit of output will reduce profits. more output will add more to revenue than to cost. more output will add more to cost than to revenue. the firm is maximizing profit.

Solution

Corrrect choice - C. More output will add more to revenue that to cost - as MR > MC, additional unit of output will add more to revenue

a. is false. Less output will mean lesser revenue and higher costs
b. is false, each extra output will add to profits as MR > MC
d. is false. as MR>MC, each unit will dad to revenue
e. is false. Profit maximization is at the point where MR = MC.