Your average and marginal cost is $300. You charge $500 and serve 1,000 customers. You forecast sales of 1,200 at a price of $450. Which of the following is true?
a. Marginal revenue is $450.
b. Marginal revenue is larger than marginal cost.
c. Cutting the price to $450 will increase profits.
d. None of the above
Answers: 3
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Your average and marginal cost is $300. You charge $500 and serve 1,000 customers. You forecast sale...
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