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Ashley, Who Makes Knitted Caps, Determines That Her Marginal Cost

Question 299

Essay

Ashley, who makes knitted caps, determines that her marginal cost of producing one more knitted cap is equal to $10.A consumer offers her $12 if she sells one more knitted cap to her.Ashley will:
A.not sell the additional knitted cap, since she does not know what her total costs will be.
B.sell the additional knitted cap, since the marginal revenue is greater than the marginal cost for the unit.
C.realize that her production is not profitable and shut down her business.
D.offer to sell 20 additional knitted caps, since it must be profitable.

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sell the additional knitted ca...

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