Question

Grant thinks he has reached the point where he has maximized his profit. However, because this can be tricky to determine, he is not sure. He decides to test it by selling one more unit. If Grant is correct in his assumption,
what should happen when he sells this additional unit?
a. Grant will break even on his sales
b. Profit will increase but at a slower rate
c. Marginal revenue will exceed marginal cost
d. Marginal cost will exceed marginal revenue
e. Profits will be reduced to zero

Answer 1

Answer:c

Step-by-step explanation:

Profit maximization happens with marginal revenue is equal to marginal cost, so if Grant's assumption was right before selling the extra unit, when he actually sells the extra unit, this will increase his revenue

That's why the answer is c

Marginal revenue will exceed marginal cost