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Figure 12-2 Costs and revenue Total cost Total revenue CU 1,000 Q a Q2 Q Q3 Quantity Refer to Figure 12-2. What happens if the
Figure 12-2 Costs and revenue Total cost Total revenue CU 1,000 Q a Q2 Q Q3 Quantity Refer to Figure 12-2. What happens if the firm produces more than Q4 units? Its profit increases. It makes a loss. o It could make a profit or a loss depending on what happens to demand. Its total revenue is increasing faster than its total cost
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