Mr. Rogers sells colored pencils. The colored-pencil industry is competitive. Mr. Rogers hires a business consultant to analyze his company's financial records. The consultant recommends that Mr. Rogers increase his production. The consultant must have concluded that Mr. Roger's

Question

Quizplus · Accepted Answer

The consultant recommended that Mr. Rogers increase his production, which suggests that the additional revenue generated from the increased sales will exceed the additional cost of producing those extra colored pencils. Therefore, the consultant must have determined that Mr. Rogers' marginal revenue (the additional revenue earned from selling one more unit) exceeds his marginal cost (the additional cost of producing one more unit). Option C is the only choice that reflects this analysis.

Mr Rogers Sells Colored Pencils