You own a company that produces widgets. You currently produce 100 widgets; each widget sells for $100 and costs $80 to produce. You are considering increasing your company's production by one unit, upping the total to 101 widgets. At this level of production, total revenue will increase to $10,100, and total costs will increase to $8,120. Based on the given information, and considering you are a good entrepreneur and economist who wants to maximize profit, you should... A. Sell less than 100 units B. Not produce unit 101 C. Produce unit 101 D. Produce 150 units
You own a company that produces widgets. You currently produce 100 widgets; each widget sells for $100 and costs $80 to produce. You are considering increasing your company's production by one unit, upping the total to 101 widgets. At this level of production, total revenue will increase to $10,100, and total costs will increase to $8,120. Based on the given information, and considering you are a good entrepreneur and economist who wants to maximize profit, you should... A. Sell less than 100 units B. Not produce unit 101 C. Produce unit 101 D. Produce 150 units
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 10SQP
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You own a company that produces widgets. You currently produce 100 widgets; each widget sells for $100 and costs $80 to produce. You are considering increasing your company's production by one unit, upping the total to 101 widgets. At this level of production, total revenue will increase to $10,100, and total costs will increase to $8,120. Based on the given information, and considering you are a good entrepreneur and economist who wants to maximize profit, you should...
A. Sell less than 100 units
B. Not produce unit 101
C. Produce unit 101
D. Produce 150 units
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