The Price of Output to a Firm Is $9 and the Marginal

question 105

Multiple Choice

The price of output to a firm is $9 and the marginal cost of the last unit produced is $8.50.This means the

• A)extra benefit of the last unit produced is less than the extra cost.
• B)firm should lower its output to increase profits.
• C)firm is earning an average profit of $0.50.
• D)extra benefit of the last unit produced is greater than the extra cost.

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Definitions:

Palmitic Acid

A saturated fatty acid found in fats and waxes including olive oil, palm oil, and body lipids, used in the production of soaps and cosmetics.

Octadecanal

An organic compound belonging to the aldehyde group with an 18-carbon chain.

Stearic Acid

A saturated fatty acid commonly found in animal and vegetable fats, used in various manufacturing processes.

Saponification

A chemical reaction involving the hydrolysis of esters in fats with alkali, resulting in the formation of soap and glycerol.