If, for the last bushel of apples produced and sold by an apple farm, marginal revenue exceeds marginal cost, then in producing that bushel the farm
A)added more to total cost than it added to total revenue.
B)added an equal amount to both total revenue and total cost.
C)added more to total revenue than it added to total cost.
D)maximised its profits or minimised its losses.

Question

Quizplus · Accepted Answer

Marginal revenue exceeding marginal cost means that the farm was able to sell the last bushel of apples for more than it cost to produce. Therefore, the farm added more to total revenue than it added to total cost. This choice does not necessarily mean that the farm maximized its profits, but it did not incur losses on the last bushel produced and sold.

If, for the Last Bushel of Apples Produced and Sold