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

question 161

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 $7.It follows that

• A)the production of the 100th unit of output increases the firm's profit by $3.
• B)the production of the 100th unit of output increases the firm's average total cost by $7.
• C)the firm's profit-maximizing level of output is less than 100 units.
• D)the production of the 110th unit of output must increase the firm's profit by less than $3.