Exhibit 8-4 Marginal Cost and Revenue for a Firm -In Exhibit 8-4, This Firm Is Currently Producing 14 Units

Exhibit 8-4 Marginal cost and revenue for a firm $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Unit } \\\text { Quantity }\end{array} & \text { Marginal Cost } & \begin{array} { c } \text { Marginal } \\\text { Revenue }\end{array} \\\hline 12 & \$ 5 & \$ 9 \\13 & 6 & 9 \\14 & 7 & 9 \\15 & 8 & 9 \\16 & 9 & 9 \\17 & 10 & 9 \\\hline\end{array}$$
-In Exhibit 8-4, this firm is currently producing 14 units of output. What would you advise this firm to do?

A) Decrease output to 13.
B) Increase output to 15.
C) Remain at 14 units of output.
D) Increase output to 16.
E) Increase output to 17.

Correct Answer:

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