Refer to the information provided in Figure 8.4 below to answer the questions that follow. Figure 8.4
-Refer to Figure 8.4. The marginal cost of the third microwave oven is
A) $133.33.
B) $150.
C) $350.
D) indeterminate from this information.

Question

Refer to the information provided in Figure 8.4 below to answer the questions that follow.  Figure 8.4
-Refer to Figure 8.4. The marginal cost of the third microwave oven is
A) $133.33. 
B) $150. 
C) $350. 
D) indeterminate from this information.

Quizplus · Accepted Answer

The best choice is to produce and sell 3 microwave ovens because at this level, the marginal cost is equal to the marginal revenue, resulting in maximizing profit. Beyond 3 units, the marginal cost exceeds the marginal revenue, resulting in diminishing returns and reducing profit.

Refer to the Information Provided in Figure 8