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Fresh Laundry Is a Firm That Produces Laundry Detergent

Question 120

Multiple Choice

  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 8 quality units, to maximize profit, Fresh Laundry should______ the number of quality units as the current quality marginal revenue is ______its marginal cost. A) increase; less than B) increase; equal to C) maintain; greater than D) maintain; equal to 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 8 quality units, to maximize profit, Fresh Laundry should______ the number of quality units as the current quality marginal revenue is ______its marginal cost.


A) increase; less than
B) increase; equal to
C) maintain; greater than
D) maintain; equal to

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