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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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