A profit-maximizing entrepreneur will produce and sell an additional unit of output as long as
A) it lowers the firm's unit costs.
B) it lowers the firm's marginal cost.
C) it adds more to revenue than it adds to cost.
D) there is additional plant capacity to produce.

Question

Quizplus · Accepted Answer

A profit-maximizing entrepreneur will produce and sell an additional unit of output as long as the marginal revenue from selling that unit is greater than the marginal cost of producing it.

A Profit-Maximizing Entrepreneur Will Produce and Sell an Additional Unit