Suppoee at the cument level of production a firm's marginal revenue equals 51.00, their average total costs curenty equal S1.200, and their marginal cost equals S00. The firm OA should expand output because their revenue will increase by $1.000 OB. should not expand output because their profit will decrease by $200 OC should expand output because their profit will increase by S100 OD. There is not information given to determine whether this fim should expand output or not

Suppoee at the cument level of production a firm's marginal revenue equals 51.00, their average total costs curenty equal S1.200, and their marginal cost equals S00. The firm OA should expand output because their revenue will increase by $1.000 OB. should not expand output because their profit will decrease by $200 OC should expand output because their profit will increase by S100 OD. There is not information given to determine whether this fim should expand output or not

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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