If a Firm's Marginal Revenue from Its 100th Unit of Output

question 31

Multiple Choice

If a firm's marginal revenue from its 100th unit of output is $50 and the marginal cost from its 100th unit of output is $45, then in the short run this firm should:

• A) increase its plant size.
• B) change its technology.
• C) produce more than 99 units of output.
• D) produce less than 100 units of output.
• E) shut down.

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Definitions:

Ergonomics

The study and design of equipment and workplaces to maximize productivity by reducing operator fatigue and discomfort.

Economy

The system of production, distribution, and consumption of goods and services within a particular area or country.

Job Families

Groups of different jobs that are closely related by similar duties, responsibilities, skills, or job elements.

Similar Duties

Tasks or responsibilities that are very much alike in nature and scope.