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A furniture maker currently produces 100 tables per week and sells them for a profit. She is considering expanding her operation in order to make
A furniture maker currently produces 100 tables per week and sells them for a profit. She is considering expanding her operation in order to make more tables. Should she expand?
a. | Yes, because making tables is profitable. |
b. | No, because she may not be able to sell the additional tables. |
c. | It depends on the marginal cost of producing more tables and the marginal revenue she will earn from selling more tables. |
d. | It depends on the average cost of producing more tables and the average revenue she will earn from selling more tables. |
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