Fresh Laundry is a firm that produces laundry detergent. The table above summarizes Fresh Laundry's product quality marg revenue and marginal cost at various quality levels.
-Refer to the table above. If Fresh Laundry is currently producing 2 quality units, to maximize profit, Fresh Laundry should ______the number of quality units as the current quality marginal revenue is______ than its marginal cost.

Question

Quizplus · Accepted Answer

Fresh Laundry should increase the number of quality units as the current quality marginal revenue ($10) is greater than its marginal cost ($8). This will result in higher profit for the company.

Fresh Laundry Is a Firm That Produces Laundry Detergent