Short Answer
A factory produces a product that sells for $12. They currently produce 2200 items per month, at an average cost of $3 per item. The marginal cost at this level is $2. Assume that the factory can sell all the items that it produces.
A. What is the profit at this production level?
B. Would increasing production increase or decrease profit?
Correct Answer:

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A. $19,800...View Answer
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Correct Answer:
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