A Firm Produces Two Products (A and B) Jointly

Multiple Choice

A firm produces two products (A and B) jointly. Every time a unit of A is produced, a unit of B is also produced as a byproduct. At the current level of output, the marginal revenue from sales of A is $25 and from sales of B is $12. The marginal cost of producing a unit of A is $37, so the firm should

A) continue producing the current level of output.
B) increase its rate of production.
C) reduce its rate of production.
D) This question cannot be answered without additional information.