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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