The Following Data Confront a Business -If a Business Chooses to Produce 5 Units of Output

question 38

Multiple Choice

The following data confront a business:

$\begin{array}{cc}\text { Output }&\text { Marginal Revenue } &\text { Marginal Cost } \\0&16 & 10 \\2&16 & 9 \\3&16 & 13 \\4&16 & 15 \\5&16 & 21\\6\end{array}$
-If a business chooses to produce 5 units of output:

• A)the last unit produced will add $5 to profit
• B)the last unit produced will subtract from profit
• C)profits will be maximized
• D)it will continue to increase output since each additional unit produced adds to profit
• E)the last unit of output will add $16 to profit

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