CA CPT Model Test Paper 5 with solutions for online practice

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Question : 112 of 200

Marks: +1, -0

Which of the following statements is incorrect?

If marginal revenue exceeds marginal cost the firm should increase output.
If marginal cost exceeds marginal revenue the firm should decrease output.
Economic profits are maximized when total costs are equal to total revenue.
Profits are maximized when marginal revenue equals marginal cost.

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