Scenario 1-2 Suppose a Cigar Manufacturer Currently Sells 1,500 Cigars Per Week

Multiple Choice

Scenario 1-2
Suppose a cigar manufacturer currently sells 1,500 cigars per week and makes a profit of $3,000 per week.The plant foreman observes,"Although the last 500 cigars we produced and sold increased our revenue by $7,500 and our costs by $7,000,we are only making an overall profit of $3,000 per week so I think we need to cut back on production.
-Refer to Scenario 1-2.Had the firm not produced and sold the last 500 cigars,would its profit be higher or lower,and if so by how much?

A) Its profit would be $500 higher.
B) Its profit would be $1,000 higher.
C) Its profit would be $500 lower.
D) Its profit would be $1,500 lower.