For a Certain Firm, the 100th Unit of Output That

question 220

Multiple Choice

For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $11 and a marginal cost of $10. It follows that the

• A)production of the 100th unit of output increases the firm's profit by $1.
• B)production of the 100th unit of output increases the firm's average total cost by $1.
• C)firm's profit-maximizing level of output is less than 100 units.
• D)production of the 101st unit of output must increase the firm's profit by more than $1.

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Definitions:

Reliable Way

A reliable way refers to a method or approach that consistently produces accurate, trustworthy, or dependable results.

Premonitions of Disaster

A strong feeling of anxiety or anticipation that something bad or catastrophic is going to happen, without logical reasoning.

Hindsight Bias

A cognitive bias where people overestimate their ability to have predicted an outcome that could not possibly have been predicted.

Illusory Correlations

The mental tendency to assume a connection between two factors even if there is none.