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

question 404

Multiple Choice

For a certain firm,the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $11.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 110th unit of output must increase the firm's profit but by less than $1.

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Definitions:

Dollar

The basic monetary unit used in the United States and some other countries.

Economic Activities

Actions that involve the production, distribution, and consumption of goods and services in an economy.

Revenues

Income earned by a company from its business activities, typically from the sale of goods and services to customers.

Sale Of Merchandise

This refers to the income generated from selling products that a business typically offers to its customers.