For a certain firm,the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $7.Which statement best explains the firm's profit-maximizing decision
A) The production of the 100th unit of output increases the firm's profit by $3.
B) The production of the 100th unit of output increases the firm's average total cost by $7.
C) The firm's profit-maximizing level of output is less than 100 units.
D) The firm is maximizing profits at the 100th unit of output.
Correct Answer:
Verified
Q106: The intersection of a firm's marginal-revenue and
Q107: Scenario 14-1
Assume a certain firm is producing
Q108: Scenario 14-1
Assume a certain firm is producing
Q109: Figure 14-6 Q110: Suppose you bought a ticket to a Q112: Figure 14-5 Q113: A profit-maximizing firm in a competitive market Q114: When a profit-maximizing firm finds itself minimizing Q115: A certain competitive firm sells its output Q116: Figure 14-5 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
