A Colombian emerald mine has a monopoly over the production of emeralds in Colombia.The mine will find it profitable to increase the mining production of emeralds as long as marginal cost
A) is less than marginal revenue.
B) equals marginal revenue.
C) is greater than marginal revenue.
D) is positive.

Question

Quizplus · Accepted Answer

The mine will find it profitable to increase production as long as the marginal revenue generated by the additional units of emeralds sold is greater than the marginal cost of producing them. Therefore, the mine will increase production as long as marginal cost is less than marginal revenue.

A Colombian Emerald Mine Has a Monopoly Over the Production