A baseball manufacturer is currently producing 10,000 baseballs.At this production level,marginal cost is $2.50 and average total cost is $2.00.Baseballs sell for $3.00 at this production level,and marginal revenue is $2.25.From this information,we can conclude that

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The manufacturer is producing too many baseballs because the marginal cost ($2.50) is greater than the marginal revenue ($2.25), indicating that producing additional baseballs decreases profit.

A Baseball Manufacturer Is Currently Producing 10,000 Baseballs