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At the Current Production Level the Marginal Cost of a Company

Question 338

Multiple Choice

At the current production level the marginal cost of a company is zero; there is a positive marginal profit at a slightly lower production level; and there is a negative marginal profit at a slightly higher production level. Should the production level be adjusted, and if so, in what direction?


A) It should be decreased.
B) It should be increased.
C) It should not be adjusted.

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