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A Manufacturer Produces 1,000 Basketballs Each Day,which It Sells to Customers

Question 18

Multiple Choice

A manufacturer produces 1,000 basketballs each day,which it sells to customers for $30 each.All costs associated with production and sales total $10,000; however,if the manufacturer were to produce one additional basketball per day,total costs would increase to $10,100.From these amounts,we can tell that


A) the firm has negative profit.
B) marginal cost equals $100.
C) marginal cost equals $150.
D) marginal cost equals marginal revenue.

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