If at the current production level the marginal cost of a company is zero; at a slightly decreased production level the marginal cost is positive; and at a slightly increased production level the production cost is negative; how should the company alter its production level?
A)T he production level should be decreased.
B)T he production level should remain at its current level.
C)T he production level should be increased.

Question

Quizplus · Accepted Answer

If the marginal cost is negative at a slightly increased production level, it means that increasing production will reduce overall costs, suggesting that the company should increase its production level.

If at the Current Production Level the Marginal Cost of a Company