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If Anu Takes on One More Client, the Marginal Cost

Question 93

Multiple Choice

If Anu takes on one more client, the marginal cost of serving that client is $100, but the average cost will be $200. Which of the following statements is FALSE based on this information?


A) If she takes on one more client, the quantity produced is to the left of where marginal cost and average total cost intersect.
B) If she can sell her services for $250, she will make a profit.
C) The quantity where marginal cost and average total cost intersect is less than she is currently producing.
D) If she serves one fewer client instead, the marginal cost will still be lower than her average total cost.

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