The XYZ Computer Company has a monopoly over the production of a specialized color printer. The XYZ Computer Company will find it profitable to increase the production of specialized color printers as long as marginal cost
A) is less than marginal revenue.
B) equals marginal revenue.
C) is greater than marginal revenue.
D) is positive.

Question

Quizplus · Accepted Answer

In economic theory, a firm will find it profitable to increase production as long as the marginal cost (the cost of producing one additional unit) is less than the marginal revenue (the revenue from selling that additional unit). This is because the firm is adding more to its revenue than it is adding to its costs, thereby increasing profit.

The XYZ Computer Company Has a Monopoly Over the Production