Whenever the additional revenue from the last unit of output exceeds the additional cost of that unit,a profit-maximizing firm should
A)do nothing,the firm is making profits.
B)produce less in order to increase profits.
C)produce more in order to increase profits.
D)think about investing in another industry.

Question

Quizplus · Accepted Answer

When the additional revenue from the last unit of output exceeds the additional cost of that unit, it means that the marginal revenue (MR) is greater than marginal cost (MC). In this case, a profit-maximizing firm should produce more in order to increase profits because each additional unit will contribute positively towards the overall profit.

Whenever the Additional Revenue from the Last Unit of Output