Table 14-4

-Refer to Table 14-4.The firm will produce a quantity greater than 4 because at 4 units of output,marginal cost

Question

Table 14-4
 
-Refer to Table 14-4.The firm will produce a quantity greater than 4 because at 4 units of output,marginal cost

Quizplus · Accepted Answer

At 4 units of output, the marginal cost of producing an additional unit is $84, which is less than the marginal revenue of $92. This means that the firm can increase its profits by producing more units, so it will produce a quantity greater than 4. Therefore, the best choice is A.

Table 14-4 -Refer to Table 14-4.The Firm Will Produce a Quantity Greater