For a certain firm, the 100th unit of output that the firm produces has marginal revenue equal to $10 and a marginal cost of $7. It follows that
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 production of the 110th unit of output must increase the firm's profit by less than $3.
Correct Answer:
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