Assume That Bost Incorporated Sells Game Cartridges That Can Be

Multiple Choice

Assume that Bost Incorporated sells game cartridges that can be used in a popular home video system.The company currently sells 300 cartridges per week and earns $500 in profit.The production manager calculates that the marginal cost of producing the next unit is $5,while marginal revenue from one additional unit is $10.Based on this information we would conclude that:

A) Bost should reduce their output to 295 cartridges to increase profit.
B) Bost's profit would fall to $495 by increasing output by 1 unit.
C) Bost's profit would rise to $505 by increasing output by 1 unit.
D) Bost's profit-maximizing output is 300 cartridges.