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:

Chief Executive Officer

The highest-ranking executive in a company, responsible for major corporate decisions and overall operations.

Corporate Level

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