As long as the revenue of the last unit produced and sold is greater than the cost of the last unit produced and sold,what should a firm do?
A) reach its break-even point very shortly
B) continue manufacturing
C) continue using price equilibrium
D) consider using sales maximization pricing

Question

Quizplus · Accepted Answer

As long as the revenue of the last unit produced and sold is greater than the cost of the last unit produced and sold, the firm should continue manufacturing to generate profit. Option A is incorrect because reaching the break-even point does not necessarily generate profit. Option C is irrelevant as it does not relate to the situation at hand. Option D is also incorrect because in this situation, the goal is to generate profit, not necessarily maximize sales.

As Long as the Revenue of the Last Unit Produced