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If the Marginal Cost for Dinky's Donuts to Advertise One

Question 152

Multiple Choice

If the marginal cost for Dinky's Donuts to advertise one additional day each week in the local newspaper is $200, then Dinky's Donuts should advertize that additional day


A) only if the marginal benefit the company receives each week is greater than $200 plus an acceptable profit margin.
B) as long as the marginal benefit the company receives each week is just equal to or greater than $200.
C) as long as the weekly marginal cost does not rise.
D) until the marginal benefit the company receives reaches zero.

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