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Business, 08.04.2021 15:10 562204

Scenario 14-2 The information below applies to a competitive firm that sells its output for $40 per unit. • When the firm produces and sells 150 units of output, its average total cost is $24.50. • When the firm produces and sells 151 units of output, its average total cost is $24.55. Refer to Scenario 14-2. How does the firm's marginal revenue (MR) compare to its marginal cost (MC) when it increases its output from 150 units to 151 units? a. MC exceeds MR by $13.50. b. MR exceeds MC by $11.05. c. MR exceeds MC by $7.95. d. MC exceeds MR by $11.05.

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