For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $7. Which of the following explains the firm’s profit-maximizing decision?

Question

Accepted Answer

The production of the 100th unit of output increases the firm’s profit by $3.

Answer

The production of the 100th unit of output increases the firm’s average total cost by $7.

Answer

The firm’s profit-maximizing level of output is less than 100 units.

Answer

The firm is maximizing profits at the 100th unit of output.

Answer

none of the above

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For a certain firm, the 100th unit of output that the firm produces has a margin...

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