A firm now produces its sales-maximizing level of output.If the firm increased its output by one unit, its marginal revenue would become
A)negative.
B)smaller but still positive.
C)larger but still negative.
D)larger but still positive.

Question

Quizplus · Accepted Answer

When a firm is producing its sales-maximizing level of output, it is operating where marginal revenue equals zero. Increasing output by one unit would make marginal revenue negative.

A Firm Now Produces Its Sales-Maximizing Level of Output