What should firm do when Marginal revenue is greater than marginal cost ........

Economics- Phase (I & II) Demand and Supply , Market Structures

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What should firm do when Marginal revenue is greater than marginal cost?

Firm should expand output

Effect should be made to make them equal

Prices should be covered down

All of these

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Explanation:

If a firm is producing at a level where marginal revenue is greater than marginal cost, then by producing one more unit the firm can gain more revenue than it loses in cost and thereby makes a marginal profit. This means that the firm is losing profit with each additional unit of output and it should produce less.