Question
You sell sandwiches from a food truck. The market for sandwiches is perfectly competitive. Currently, the market price for a sandwich is $5. This is
You sell sandwiches from a food truck. The market for sandwiches is perfectly competitive. Currently, the market price for a sandwich is $5. This is also your marginal revenue for the next sandwich you sell. The marginal cost for you to make the next sandwich is also $5. Should you adjust the quantity of sandwiches produced in any way so to maximise profit?
A) No, your current profit is already as high as can be.
B) Yes, you should make more sandwiches so to increase profit.
C) Yes, you should make fewer sandwiches so to increase profit.
D) We cannot tell, since we do not know your current profit.
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