For a certain firm,the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $7.It follows that

Question

Quizplus · Accepted Answer

The marginal revenue of the 100th unit is $10, which means the firm earns an additional $10 when it sells the 100th unit. The marginal cost of producing the 100th unit is $7, which means the cost of producing the 100th unit increases by $7. Therefore, the production of the 100th unit increases the firm's profit by $10 - $7 = $3. So, option A is correct. Option B is wrong because the average total cost is not given here. Option C may or may not be true based on the information given. Option D is wrong because we do not have any information about the 110th unit's marginal revenue and marginal cost.

For a Certain Firm,the 100th Unit of Output That the Firm