Ashley,who Makes Knitted Caps,determines That Her Marginal Cost of Knitting

Ashley,who makes knitted caps,determines that her marginal cost of knitting one more cap is $10.A consumer offers her $12 for one more knitted cap.Ashley will:

A) not sell the additional cap since she does not know what her total costs will be.
B) sell the additional cap since the marginal revenue is greater than the marginal cost for the unit.
C) realize that her production is not profitable and shut down her business.
D) offer to sell 20 additional caps since it must be profitable.

Correct Answer:

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