A company is producing 15,000 units.At this output level,marginal revenue is $22 and the marginal cost is $18.The firm sells each unit for $48 and average total cost is $40.What can we conclude from this information?
A)The company is making a loss
B)The company needs to cut production
C)The company needs to increase production
D)Not enough information is provided

Question

Quizplus · Accepted Answer

Since marginal revenue ($22) is greater than marginal cost ($18), the company can increase its profit by producing more units.

A Company Is Producing 15,000 Units