After Selling 1,000 Three-Ring Binders, Tony DiFulvio Realizes That the Marginal

question 61

Multiple Choice

After selling 1,000 three-ring binders, Tony DiFulvio realizes that the marginal revenue from selling the last binder was less than the marginal cost.From this we can conclude that

• A)Tony's business earns a short-run economic profit.
• B)Tony should shut down his business temporarily.
• C)Tony's profit fell after selling his 1,000th three-ring binder.
• D)Tony's profit would be greater if he sold an additional three-ring binder.

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Definitions:

Fluid Intelligence

The ability to think abstractly, reason, identify patterns, and solve problems quickly in novel situations.

Crystallized Intelligence

A form of intelligence that involves the ability to use skills, knowledge, and experience, and tends to increase with age.

State Capitals

The cities designated as the administrative centers for the governments of the states within a country.

Abstract Reasoning

The capacity to examine data, identify trends and connections, and address issues in a sophisticated, conceptual manner.