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A owner of a medical supply company is looking for ways to maximize profits on an established line of specialty catheters. She asks her accountant
A owner of a medical supply company is looking for ways to maximize profits on an established line of specialty catheters. She asks her accountant to calculate the marginal cost and the marginal revenue for those catheters. The accountant reports that marginal cost is $45 per catheter and marginal revenue is $43 per catheter. Which would be the wisest decision to maximize profits? Question 5 options: Expand sales of the specialty catheters as long as marginal revenue is less than marginal cost Reduce sales of the specialty catheters as long as marginal revenue is less than marginal cost Eliminate the product line of specialty catheters Do nothing; profits are already maximized
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