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If a Potato Farmer Expands Output, He Finds That the Increase

Question 197

Multiple Choice

If a potato farmer expands output, he finds that the increase in total revenue is less than the increase in total costs. This means that:


A) profit is being maximized.
B) he should not have expanded output.
C) he should produce even more output.
D) the firm is wasting resources.
E) the farmer should go out of business.

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