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McCain Foods Ltd

Question 104

Multiple Choice

McCain Foods Ltd.is one of the largest producer s of frozen french fries in the world. If the marginal cost of producing an extra million kilograms of french fries is $1 million, then McCain Foods Ltd.should produce the extra french fries


A) only if the marginal benefit is greater than $1 million plus an acceptable profit margin.
B) as long as the marginal benefit the firm receives is just equal to or greater than $1 million.
C) as long as the marginal cost does not rise.
D) until the marginal benefit the firm receives reaches zero.

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