Assume That the Marginal Revenue Curve Intersects the Rising Portion

question 22

Multiple Choice

Assume that the marginal revenue curve intersects the rising portion of the marginal cost curve at 100 units of output.At this output level,a profit-maximizing firm's total fixed cost is $600 and its total variable cost is $400.If the price of the product is $8 per unit,the firm should produce:

• A)zero units of output.
• B)less than 100 units of output.
• C)100 units of output.
• D)more than 100 units of output.
• E)200 units of the output.

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