Marginal Cost of Production

The following questions refer to the following table which shows a firm's marginal cost of production.

-Refer to Marginal Cost of Production.Suppose the firm can sell as many units as it wants at a price of $20,then it should produce
A) three units
B) four units
C) zero units
D) the number of units is indeterminate without more information

Question

Marginal Cost of Production

The following questions refer to the following table which shows a firm's marginal cost of production.

-Refer to Marginal Cost of Production.Suppose the firm can sell as many units as it wants at a price of $20,then it should produce
A) three units 
B) four units 
C) zero units 
D) the number of units is indeterminate without more information

Quizplus · Accepted Answer

The correct answer is indeterminate without more information because the marginal cost of production at different levels of output is not provided, nor is there information about fixed costs or total cost functions to determine the optimal level of production.