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Suppose the firm achieves total revenue of $1,000 by selling 150 units, while facing total costs of $900. If the firm produces and sells 151
Suppose the firm achieves total revenue of $1,000 by selling 150 units, while facing total costs of $900. If the firm produces and sells 151 units, their total revenue is $1,005 and their total costs is $950. Should the firm produce and sell the extra unit?
A) no, since marginal profits are positive
B) yes, since profits are positive
C) yes, since the marginal benefit is positive
D) no, since marginal profits are declining
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