Leugers Custom Cabinetmakers Is Currently Operating at a Profit While

question 98

Multiple Choice

Leugers Custom Cabinetmakers is currently operating at a profit while producing four custom cabinets per week.At that output level,marginal cost exceeds marginal revenue.In order to maximize profit,Leugers should

• A)decrease output
• B)increase output
• C)leave output at four cabinets per week
• D)either increase or decrease output,depending on its level of fixed costs
• E)either increase or decrease output,depending on its level of variable costs