-On the basis of this table, marginal cost is less than marginal revenue at:
A) 2 units of output.
B) 5 units of output.
C) 6 units of output.
D) none of the above.

Question

-On the basis of this table, marginal cost is less than marginal revenue at:
A) 2 units of output. 
B) 5 units of output. 
C) 6 units of output. 
D) none of the above.

Quizplus · Accepted Answer

Marginal cost (MC) is less than marginal revenue (MR) when the cost of producing an additional unit is lower than the revenue generated from selling that unit. Without the specific table data, the general principle is that if MC < MR, it is profitable to increase production. Since the question does not provide the table data, the correct answer cannot be determined based on specific values. However, given the options, if we assume the question implies a scenario where A is correct, then at 2 units of output, MC would be less than MR, encouraging further production.

-On the Basis of This Table, Marginal Cost Is Less