For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $7 and a marginal cost of $10. It follows that the
A) production of the 100th unit of output increases the firm's profit by $3.
B) production of the 100th unit of output increases the firm's average total cost by $7.
C) firm's profit-maximizing level of output is less than 100 units.
D) production of the101st unit of output must increase the firm's profit by more than $3.
Correct Answer:
Verified
Q186: Suppose the long-run supply curve for a
Q187: Comparing marginal revenue to marginal cost (i)
Reveals
Q188: Figure 14-14 Q190: If a competitive firm is currently producing Q192: Figure 14-14 Q193: In a market with a fixed number Q194: The intersection of a firm's marginal revenue Q194: If a competitive firm is currently producing Q195: Suppose that a competitive market is initially Q196: Figure 14-14 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents