If at an Output of 4,000 Units, Sloan Company Is

question 51

Multiple Choice

If at an output of 4,000 units, Sloan Company is making an economic profit and marginal profit is $20 per unit, the firm should

• A)reduce output to maximize total profit.
• B)increase output until marginal profit falls to zero.
• C)do whatever is necessary to increase marginal profit.
• D)There is not enough information to make a decision.