Suppose It Costs a Firm $200 Million to Produce and Promote

Multiple Choice

Suppose it costs a firm $200 million to produce and promote a sequel.If the firm follows the marginal principle and decides not to produce the movie,which of the following must be true?

A) The firm believes that the marginal benefit is less than $200 million.
B) The firm believes that the marginal cost is larger than $200 million.
C) The firm believes that the marginal benefit is larger than $200 million.
D) The firm believes that the marginal cost is less than $200 million.