Good Boy Super Treats produces healthy treats for dogs. At its current advertising level, Good Boy Super Treats marginal cost of advertising is $1 million and their marginal benefit is $1.2 million. Which of the following is true?
A) The firm is currently maximizing its net profit.
B) The firm should reduce the amount of advertising to increase its net profit.
C) The firm should increase the amount of advertising to increase its net profit.
D) If the firm increases the amount of advertising, its net profits will decrease.
Correct Answer:
Verified
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