If the marginal cost for Big Ed's Used Car Emporium to advertise one additional day each week on a local TV station is $1,500, then Big Ed's should advertize that additional day
A) as long as the weekly marginal cost does not rise.
B) only if the marginal benefit the company receives each week is greater than $1,500 plus an acceptable profit margin.
C) as long as the marginal benefit the company receives each week is just equal to or greater than $1,500.
D) until the marginal benefit the company receives reaches zero.
C
You might also like to view...
Compared to consumption spending, investment historically has tended to be
A) stagnant. B) more variable. C) more stable. D) greater.
U.S. real GDP per person grew rapidly in the early 1960s. The table above has U.S. real GDP and population for 1961 and 1962
a. What was U.S. real GDP per person in 1961? b. What was U.S. real GDP per person in 1962? c. Between 1961 and 1962, how rapidly did U.S. real GDP per person grow?